SKYMISSION GP (01429) issues profit warning, expecting mid-term net loss to increase to approximately HK$15 million to HK$25 million.

SKYMISSION GP (01429) announced that it is expected to have a net loss of approximately 15 million to 25 million Hong Kong dollars for the six months ending September 30, 2024, compared to a net loss of approximately 4.2 million Hong Kong dollars for the same period in 2023. The gross profit margin is expected to decrease from around 5.0% in the first half of 2023 to around 1.0% in the first half of 2024. This decrease is mainly due to increased on-site costs and intense competition in new template engineering contracts. Additionally, the Group's financial performance is affected by an increase in trade receivables and provisions for expected credit losses on trade and contract assets due to aging receivables.