Yiu Group (00406) is forecasting a year-on-year profit change of around HK$100 million to HK$130 million in annual results

According to the Zhitong Finance App, Benefit Group (00406) announced that it expects the group to achieve a net loss of about HK$100 million to HK$130 million for the year ended March 31, 2025, while net profit of HK$66 million for the same period in 2024.

According to the announcement, the change in performance was mainly due to the combined impact of the following factors: (i) negative contract price adjustments for government public housing construction projects, leading to a decrease in contract value and an adverse impact on the gross margin of the Group's construction business; (ii) unrealized revaluation losses on the Group's commercial investment properties due to the reduction in construction notices in the second half of the fiscal year; and (iii) the decline in gross margins of several large-scale renovation contracts and a decrease in profit in the renovation business due to reduced construction notices in the second half of the fiscal year. These negative effects were partly offset by an increase in profit generated from the net value of property compensation received from owners during the financial year under the relocation compensation agreement concluded in 2015, which stipulated compensation provisions relating to the relocation of the Shenzhen Longhua factory in mainland China.