WING FUNG GROUP (08526) issues profit warning, expected net loss for the year 2025 to be approximately HK$20 million to HK$24 million, a turnaround from profits in the same period last year.

WING FUNG GROUP (08526) announced that the group is expected to incur a net loss ranging from approximately HK$20 million to HK$24 million for the year ending on December 31, 2025 (the period in question), compared to a net profit of approximately HK$1.1 million in the same period in 2024. The board of directors believes that the expected loss during the period in question is mainly due to (i) a decrease in revenue of approximately HK$28 million to HK$34 million resulting from economic downturn causing project delays; (ii) cost overruns due to delays in completing multiple projects within the group, leading to a significant decrease in the expected gross profit margin of the group's projects; (iii) a decrease in impairment loss reversals for trade receivables and contract assets during the period in question; and (iv) confirmation of contract asset write-offs for the completion and conclusion of the Taipa project in Macau during the period in question.