Encheng Holdings (01486) issued a profit warning. The medium-term loss is expected to be about HK$13 million to HK$15 million year-on-year profit and loss

According to the Zhitong Finance App, Encheng Holdings (01486) announced that the Group expects to record a loss of approximately HK$13 million to HK$15 million for the six months ending June 30, 2026, while a profit of approximately HK$51 million was recorded for the same period in 2025, including one-time other revenue of approximately HK$49 million from exercising the right of use at zero cost (that is, using the entire office floor of the building during the remaining period of the land use right).

The Board believes that the loss was mainly due to a decline in earnings due to a reduction in the amount of new contracts and supplementary contracts signed by the Group during the period, as well as a loss of approximately HK$2.6 million attributable to an associated company. Despite recording losses during the period, the Group's financial and liquidity position remained stable, and cash and bank balances on June 30, 2026 remained at similar levels as at 31 December 2025.