EASY SMART GP issues a profit warning, expecting an annual consolidated loss and total comprehensive income of approximately HKD 500,000 to HKD 5 million
EASY SMART GP expects that the total annual comprehensive loss and comprehensive income for the year ending June 30, 2025, will be approximately HKD 500,000 to HKD 5 million, a significant decline from the comprehensive profit of HKD 35.8 million in the same period of 2024. The reasons for the decline in performance include increased subcontractor costs, decreased profit margins on bidding projects, and the write-off of approximately HKD 2 million in trade receivables
According to the Zhitong Finance APP, EASY SMART GP (02442) announced that the group expects to incur a consolidated loss and total comprehensive income of approximately HKD 500,000 to HKD 5 million for the year ending June 30, 2025, compared to a consolidated profit and total comprehensive income of approximately HKD 35.8 million for the same period in 2024.
The announcement stated that the decline in performance is mainly due to (i) an increase in subcontractor costs of approximately HKD 33.4 million, as several clients requested to expedite the progress of certain project works; (ii) a decrease in profit margins for new bidding projects this year; and (iii) a write-off of approximately HKD 2 million in trade receivables from a client who was ordered to be liquidated by the High Court in March 2025
