Hongji Group (02535)'s net loss for the medium term is not less than HK$10 million year-on-year profit to loss

According to the Zhitong Finance App, Hongji Group (02535) announced that the Group expects a net loss of not less than HK$10 million for the six months ending June 30, 2026, and a net profit of about HK$10.8 million for the six months ending June 30, 2025. The anticipated net loss is mainly due to a decrease in revenue due to a reduction in contract amounts for awarded projects; and a narrowing in gross margin, which is due to the tight budget of the general contractor, which prompted the Group to lower bid prices to obtain construction projects during the reporting period, plus costs associated with idle plant resources.