HK SH ALLIANCE (01001) Issues Profit Warning, Expects Interim Profit Attributable to Shareholders to Decrease by Approximately 35% to 45% Year-on-Year

HK SH ALLIANCE (01001) announces that the Group expects to record profit attributable to owners of the Company for the six months ended 30 September 2026 to decrease by approximately 35% to 45% compared with approximately HK$52.9 million for the corresponding period in 2025. The Board considers that the expected decrease in profit attributable to owners of the Company is mainly attributable to the following factors (including): (1) As set out in the Company's announcement dated 25 August 2026, the Group was in the process of relocating its steel reinforcement prefabrication workshop from its original site to a new site. In connection with such relocation, the Group incurred considerable relocation expenses during the period, including but not limited to professional and engineering fees involved in the dismantling and installation of machinery, transportation costs for machinery and inventory, and additional rental expenses during the transition period. The impact was further exacerbated by a decrease in delivery volume, which compressed the gross profit margin of this business segment; meanwhile, due to the impact of rising steel import costs caused by geopolitical tensions, the Group made an additional provision of not more than HK$6 million for onerous contracts during the period. Therefore, affected by these factors, the profit before income tax of the steel distribution and processing business segment for the period is expected to decrease by approximately HK$15 million to HK$18 million compared with the corresponding period in 2025. (2) As regards the Group's real estate investment and fund operation business, based on the preliminary valuation report issued by an independent professionally qualified valuer, the Group recorded a fair value loss on investment properties of not more than HK$6 million.