NEW CONCEPTS (02221) issues profit warning, expecting mid-term losses to increase to approximately HK$20 million.

NEW CONCEPTS (02221) announced that the group is expected to incur a loss of approximately HK$20 million for the six months ending September 30, 2024, compared to a loss of approximately HK$9.27 million in the same period in 2023. The announcement stated that the increase in expected loss was mainly due to a one-time confirmation of other investment income of approximately HK$4.7 million generated by investment incentives in the Yixing project in the same period in 2023; and due to delays in specific projects and lower overall gross profit margins of newly acquired projects, the financial performance of the group's construction business decreased, resulting in a decrease of approximately HK$5.1 million from the corresponding period's surplus to nearly breakeven levels for the current period.