"Profit Warning" WINSON HLDGS HK gross profit declines, forecasts annual performance in the red

WINSON HLDGS HK (06812.HK) issued a profit warning, expecting a pre-tax loss of between HKD 11 million and HKD 12 million for the fiscal year ending in March, compared to a pre-tax profit of HKD 13.3 million in the previous year. The loss is mainly due to a significant increase in direct labor costs required for new and renewed contracts, leading to a decline in gross profit and gross profit margin; overall price competition in contract bidding; and increased administrative expenses related to salary costs and the introduction of foreign labor, resulting in higher general operating expenses