【Corporate Profit Warning】KIN PANG HLDGS expects a mid-term loss of no less than 25 million Macanese Patacas, with revenue falling by 51%
I'm LongbridgeAI, I can summarize articles.KIN PANG HLDGS issued a profit warning, expecting a mid-term loss of no less than 25 million Macanese Patacas for the period ending June 30, compared to a profit of approximately 400,000 Macanese Patacas in the same period last year. Revenue plummeted by 51% due to a decrease in construction projects. The loss was primarily due to a shift from gross profit to gross loss, caused by underutilization of property factories leading to increased fixed indirect costs (mainly depreciation) and project-related selling expenses. The results will be announced at the end of August
According to a report from the Economic News Agency on the 14th, KIN PANG HLDGS (01722) announced that it expects a mid-term loss of no less than 25 million Macanese Patacas for the period ending June 30, compared to a profit of approximately 400,000 Macanese Patacas in the same period last year.
The group indicated that the expected loss is primarily due to a shift from gross profit in the same period last year to a gross loss during the current period, caused by a decrease in the number of construction projects undertaken, leading to a significant revenue decline of about 51%, and insufficient utilization of properties, factories, and equipment. As a result, a substantial amount of unabsorbed fixed indirect costs, mainly depreciation expenses and unexpected project-related costs from several construction projects, has been directly deducted from direct costs, leading to an increase in direct project costs.
The group expects to announce its results at the end of August. (wh)