Baguio Green Group (01397) is expected to achieve profit after tax in the medium term of between HK$27 million and HK$30 million, a year-on-year decrease of about 54% to 49%

According to the Zhitong Finance App, Baguio Green Group (01397) issued an announcement. Based on currently available data and a preliminary review of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 (reporting period), the Group expects to obtain profit after tax during the reporting period of between HK$27 million and HK$30 million, a decrease of approximately 54% to 49% from HK$58.8 million for the six months ended June 30, 2025 (previous period).

The decline was mainly due to lower earnings and gross margins, due to increased competition for several government contracts, and extremely aggressive and commercially unsustainable pricing by some market participants. The Group maintains a prudent and disciplined bidding strategy and focuses on providing high-quality, innovative and differentiated services to obtain healthy profit levels.