CHINA NEW HLDGS (08125) issues profit warning, expected to incur a mid-term loss of approximately 9.3 million Hong Kong dollars.

China New Holdings (08125) announced that the Group is expected to incur a loss of approximately HK$9.3 million for the six months ended September 30, 2025, as compared to a loss of approximately HK$5.5 million for the six months ended September 30, 2024. The Board of Directors believes that the increase in loss is mainly attributed to (but not limited to) the following reasons: (a) Decrease in gross profit: For the six months ended September 30, 2025, the decrease in gross profit is mainly due to a decrease in the rental occupancy rate of leased construction equipment; high building materials and labor costs; and frequent changes in design and construction plans, resulting in an increase in direct costs and a decrease in gross profit. (b) Increase in administrative expenses: For the six months ended September 30, 2025, the increase in administrative expenses is mainly due to an increase in employee costs and professional fees.