WING CHI HLDGS issued a profit warning, expecting a mid-term loss attributable to shareholders of no less than approximately HKD 13.3 million, a year-on-year loss compared to profit
WING CHI HLDGS issued a profit warning, expecting a loss attributable to shareholders of not less than approximately HKD 13.3 million for the six months ending September 30, 2025, compared to a net profit of approximately HKD 4.6 million for the same period last year. The reasons for the loss include significant losses in foundation and site leveling works, strict client revenue approval processes, unexpected geological conditions during construction, delays in project area handover, and intensified competitive pressure
According to the announcement from WING CHI HLDGS (06080), the group expects to incur a net loss attributable to shareholders of not less than approximately HKD 13.3 million for the six months ending September 30, 2025, while for the six months ending September 30, 2024, it expects to achieve a net profit attributable to shareholders of approximately HKD 4.6 million.
The board believes that the shift from net profit to net loss is mainly due to the following factors: significant losses in multiple foundation and site leveling projects, which are attributed to increasingly stringent revenue approval processes from clients leading to heightened pressure on revenue recognition; the need to allocate additional resources to address unexpected geological conditions and site constraints encountered during construction; and delays in the handover of designated project areas and client requests for changes in construction methods, which overall weaken operational efficiency; the decrease in gross profit is primarily due to intensified competitive pressure in the foundation and site leveling industry, as public and private sector project contract prices are generally under pressure, compounded by the overall economic weakness
