THELLOY DEV issues a profit warning, expecting an annual net loss of no more than HKD 55 million
THELLOY DEV issued a profit warning, expecting a net loss of no more than HKD 55 million for the current year, while a net profit of approximately HKD 8.3 million is expected for the year ending March 31, 2024. The loss is mainly due to losses from joint ventures, low gross profit from construction projects, increased financing costs, and intense market competition
According to the announcement from THELLOY DEV (01546), the group expects to incur a net loss of no more than HKD 55 million for the current year, while it anticipates a net profit of approximately HKD 8.3 million for the fiscal year ending March 31, 2024. The change in the group's performance this year is mainly due to (i) the recognition of losses from joint ventures; (ii) lower overall gross profits from several construction projects this year, primarily related to projects awarded in 2022 and 2023; and (iii) increased financing costs due to rising interest rates and new bank borrowings. In addition, due to intense market competition this year, the profit margins of several projects have declined, and employee and labor costs have increased due to extended project timelines
