Tailam Techcon (06193.HK) announced that it is expected to record a comprehensive loss of approximately RMB 4.2 million for the six months ending June 30, 2024, while it recorded unaudited comprehensive surplus of approximately RMB 1.7 million for the six months ending June 30, 2023.
The main reasons for the expected net loss instead of net profit are: (i) a decrease in the group's sales, mainly due to (a) the continued slowdown in the construction and real estate market, leading to delays in project commencement (especially for high-value customers' projects); and (b) continuous fierce industry competition, which weakens demand for the group's products; and (ii) adopting a cautious approach in accepting orders, screening out high-risk projects to better control risks.
