Wan Kei Group (01718) issues profit warning, expecting a net loss of approximately HK$11 million for the interim period, a reversal from profit to loss compared to the same period last year.

WAN KEI GROUP (01718) announced that the group is expected to incur a net loss of not less than approximately HK$11 million for the six months ending September 30, 2024, compared to a net profit of approximately HK$18.378 million in the same period in 2023. The announcement stated that the expected net loss is primarily due to impairment losses on financial and contract assets during the reporting period, compared to impairment loss reversals on financial and contract assets in the same period in 2023. Additionally, the increase in selling expenses and general and administrative expenses (including director's remuneration, employee salaries, depreciation of right-of-use assets, and other operating expenses) was attributed to the company's expansion of its existing business to maintain the stability and sustainability of the group's operations.