Entrepreneurial Group Holdings (02221) issues profit warning expecting a mid-term net loss attributable to shareholders not exceeding HK$21 million.

Entrepreneur Group Holdings (02221) announced that the group is expected to incur a net loss attributable to the owners of the company not exceeding HK$21 million for the six months ending on September 30, and the net loss attributable to the owners of the company for the six months ending on September 30, 2024 is estimated to be around HK$14.85 million. The announcement stated that the increase in expected losses is mainly due to a loss of approximately HK$7.4 million in the group's construction business during this period, while a loss of around HK$0.7 million was incurred in the corresponding period last year. The decline in performance is mainly attributed to the completion of several construction projects with higher gross profit margins in the corresponding period, while the projects ongoing in this period generally have lower gross profit margins. The above adverse effects are partially offset by the confirmation of a one-time gain of approximately HK$3.5 million, which arises from the injection of intangible assets (i.e., patented technology) into an associated company.