Flood and Group (01591.HK) issues profit warning, expected annual net loss of approximately 4 to 7 million Hong Kong dollars, turning from profit to loss year-on-year.

The Zhixun Finance APP reported that Sun and Group (01591.HK) announced that the group is expected to incur a net loss of approximately 4 to 7 million Hong Kong dollars for the fiscal year ending on March 31, 2025, compared to a net profit of approximately 39.5 million Hong Kong dollars for the fiscal year ending on March 31, 2024. The board of directors believes that the reversal of profit to loss is mainly due to a significant decrease in revenue caused by the downturn in the foundation industry; an increase in direct costs generated by newly acquired projects; an increase in impairment losses on financial assets and contract assets; and an increase in administrative and operating expenses for the fiscal year ending on March 31, 2025.