TSUN YIP HLDGS (08356) issues profit warning, expecting unreviewed mid-term shareholders' losses of approximately HK$8 million to HK$10 million, turning from profit to loss year-on-year.

TSUN YIP HLDGS (08356) announced that the group is expected to incur a unaudited loss of approximately HK$8 to 10 million for the 6 months ending September 30, 2025, compared to an unaudited profit of approximately HK$4.4 million for the 6 months ending September 30, 2024. The board believes that the expected performance change from a profit in the mid-2024 to a loss in the mid-2025 is mainly due to the following factors: no fair value gains were recognized in the mid-2025 period, while a non-recurring fair value change gain of approximately HK$17.3 million was recognized in the mid-2024 due to the revision of certain terms and conditions of accepted bills; a decrease in gross profit mainly due to additional engineering costs for projects entering maintenance or nearing completion, and an increase in costs related to change in projects; a decrease in expected credit loss allowance for trade receivables and contract assets of approximately HK$5.8 million in offset, which was recognized as credit impairment of receivables in the mid-2024.