On November 25, Glondou announced that wah wo holdings (09938.HK) expects the group to record a consolidated net profit of between 0.7 million Hong Kong dollars and 1.7 million Hong Kong dollars for the six months ending September 30, 2024, compared to an unaudited consolidated net loss of approximately 1.6 million Hong Kong dollars in the same period of 2023.
The expected turnaround from loss to profit is mainly due to: (i) some of the company's existing projects being in the peak execution phase, which has significantly increased the revenue and gross profit from construction and ancillary services by approximately 161 million Hong Kong dollars and 10.1 million Hong Kong dollars, respectively; (ii) a decrease in fair value losses of investment properties by approximately 2.4 million Hong Kong dollars; however, offset by the following items compared to the same period in 2023: (i) an increase in legal and professional costs incurred due to the recovery of outstanding contract assets and trade receivables by approximately 1.2 million Hong Kong dollars; (ii) an increase in administrative employee costs by approximately 0.8 million Hong Kong dollars; and (iii) an increase in provisions for impairment losses on contract assets and trade receivables by approximately 7.4 million Hong Kong dollars.
