WINSON HLDGS HK issued a profit warning, expecting an annual pre-tax loss of approximately HKD 11 million to 12 million
WINSON HLDGS HK expects a pre-tax loss of approximately HKD 11 million to 12 million for the current year, mainly due to increased direct labor costs, intensified price competition, and rising operating expenses. It is expected to achieve a pre-tax profit of approximately HKD 13.3 million for the year ending March 31, 2024
According to the announcement from WINSON HLDGS HK (06812), the group expects to incur a pre-tax loss of approximately HKD 11 to 12 million for the current fiscal year, while for the fiscal year ending March 31, 2024, it anticipates a pre-tax profit of approximately HKD 13.3 million.
The expected turnaround from pre-tax profit to loss for the current fiscal year is mainly attributed to the following factors: (i) a significant increase in direct labor costs required for new and renewed contracts, leading to a substantial decline in gross profit and gross profit margin; (ii) price competition in overall contract bidding; and (iii) an increase in general operating expenses due to rising salary costs and administrative expenses related to the introduction of foreign labor
