"Profit Warning" SHUN WO GROUP expects an annual loss between 4 million and 7 million yuan

SHUN WO GROUP (01591.HK) announced that for the year ending March 31 this year, the group expects to record a net loss of approximately HKD 4 million to HKD 7 million, compared to a net profit of approximately HKD 39.5 million in the same period last year.

The board believes that the shift from profit to loss is mainly due to the downturn in the foundation industry leading to a significant decrease in revenue; an increase in direct costs associated with newly awarded projects; an increase in impairment losses on financial assets and contract assets; and an increase in administrative and operating expenses for the year ending March 31 this year