KA SHUI INT'L (00822) issued a profit warning, expecting a net loss attributable to shareholders of no more than HK$60 million for the first half of the year, an increase compared to the same period last year.

KA SHUI INT'L (00822) announced that the Group expects to incur a net loss attributable to equity holders of the Company of no more than HK$60 million for the six months ending June 30, 2026, compared to a net loss of approximately HK$39.4 million for the same period in 2025. The announcement states that although the Group expects an increase in revenue for 1H2026 compared to 1H2025, the net loss is still set to increase, primarily due to the following intense industry bidding and tendering mechanisms, as well as weak market environment factors: 1. Under the commonly used bidding and tendering mechanisms in the industry, competitors generally adopt extremely aggressive pricing strategies to compete for orders. The Group has adjusted its pricing strategy in response to market conditions; however, the revenue growth in the first half of 2026 did not achieve the expected year-on-year increase; and 2. Due to the unclear global macroeconomic situation, clients have become cautious in their procurement practices, demanding price reductions and adjustments in order quantities, resulting in a significant decline in the Group's short-term gross profit margin for the period.