SUCCESS DRAGON (01182) issues profit warning, expected to incur a net loss of approximately HK$3.4 million in the medium term, turning from profit to loss year-on-year.

SUCCESS DRAGON (01182) announced that the group is expected to incur a net loss of approximately HK$3.4 million for the six months ended September 30, 2024, compared to a net profit of approximately HK$1.6 million for the six months ended September 30, 2023. The expected change from a net profit in the same period last year to a net loss in the current period is mainly due to a significant decrease in revenue from the gold processing business of approximately HK$60.9 million. This is because two suppliers are carrying out infrastructure construction in the mining area in Henan, leading to disruptions in mining activities during the current period and resulting in insufficient supply of gold ore and reduced production.