Hang Yick Holdings (01894.HK) announced on September 27 that the group expects to incur a loss of not more than 10 million Hong Kong dollars for the six months ending September 30, 2024, while a profit of approximately 6.6 million Hong Kong dollars was recorded for the six months ending September 30, 2023.
The board of directors is aware of liquidity issues and financial conditions in the construction industry concerning several customers. Considering the recent trend of repayments and increased payment delays, the company anticipates additional expected credit losses for aged trade receivables. This adjustment reflects deteriorating credit risks and uncertainties in the construction sector.
During the six months ending September 30, 2024, delays in the certification progress of several ongoing projects have had a negative impact on the revenue for this period. Additionally, rising material and labor costs, along with continued price competition posing operational challenges, have adversely affected the gross margin for the six months ending September 30, 2024.
