Sing Pao Holdings (02340) issues profit warning, expecting annual loss attributable to shareholders to be approximately HK$30-35 million.

Sheng Bai Holdings (02340) announced that the group is expected to achieve the following financial performance for the year ending December 31, 2024: (1) a decrease in income of approximately 30% to 35% compared to the year ending December 31, 2023; and (2) a loss attributable to equity holders of the company of approximately HK$30 million to HK$35 million for the year, while the loss attributable to equity holders in the previous year was approximately HK$15.8 million. The decrease in income and increase in loss for the year are due to the combined impact of the following factors: (1) several major key projects were completed in the first quarter of the year, but the group only received a few small-scale new contracts last year, which were not enough to supplement the workload for the current year. The new projects awarded this year will only commence in the second half of the year, resulting in limited progress payments in the early stages; (2) the engineering progress of our existing projects was interrupted this year due to design changes, leading to additional costs; (3) legal expenses increased this year due to litigation and arbitration cases, with the relevant hearings scheduled for 2025; and (4) provisions were made this year for the judgment payments related to the lawsuit with Fuchen Insurance (Hong Kong) Limited (High Court Civil Case No. 245 of 2022 and High Court Civil Case No. 472 of 2022) based on compensatory basis.