SHUN WO GROUP (01591) issues profit warning. It is expected to incur a mid-term loss of approximately HK$4 million to HK$8 million.

SHUN WO GROUP (01591) announced that the group expects to incur a net loss of approximately HK$40 million to HK$80 million for the six months ended September 30, 2024, compared to a net profit of approximately HK$329 million for the same period in 2023. The change from a net profit in the same period in 2023 to a net loss in the current period is mainly due to the following factors: a significant decrease in revenue due to the completion of several large-scale foundation projects awarded in previous years; higher direct material costs and expenses incurred in the initial stages of newly awarded foundation projects in the current period; an increase in impairment losses on financial assets and contract assets; an increase in interest income and management fee income from projects awarded at the beginning of 2024.