WAH WO HOLDINGS issues a profit warning, expecting to achieve a consolidated net profit of HKD 15.7 million to HKD 17.7 million for the year, turning from a loss to a profit year-on-year
WAH WO HOLDINGS expects its annual consolidated net profit for the year ending March 31, 2025, to be between HKD 15.7 million and HKD 17.7 million, turning a profit from a net loss of HKD 55.1 million in the same period of 2024. The main reasons include a significant increase in revenue and gross profit from existing projects, as well as a reversal of impairment losses of approximately HKD 9.6 million for the year
According to the announcement from WAH WO HOLDINGS (09938), the group expects to achieve a consolidated net profit ranging from HKD 15.7 million to HKD 17.7 million for the year ending March 31, 2025, compared to a consolidated net loss of approximately HKD 55.1 million for the same period in 2024.
The expected turnaround from loss to profit this year compared to the same period in 2024 is mainly due to: (i) some of the group's existing projects being in the peak execution phase, resulting in significant increases in revenue and gross profit from construction and supporting services of approximately HKD 242 million and HKD 33 million, respectively; and (ii) a reversal of impairment losses of approximately HKD 9.6 million this year, whereas last year, due to the liquidation of a major construction group in Hong Kong, the group's credit risk on receivables increased, necessitating a provision of approximately HKD 50.2 million
