Baofa Holdings (08532) Fa Ying Guang expects annual shareholders' losses to be no less than HK$114.7 million

According to the Zhitong Finance App, Baofa Holdings (08532) announced that it is expected that the Group will have a gross loss of at least HK$91.2 million for the year ended March 31, 2025, and a gross profit of about HK$24.1 million for the year ended March 31, 2024. Furthermore, it is expected that the loss attributable to the company's equity holders will be no less than HK$114.7 million in the reporting year, while the profit attributable to the equity holders of the company will be approximately HK$1.2 million in the previous year.

The Group's anticipated gross losses in the reporting year and losses due to the company's equity holders were mainly due to the following factors: (i) a sharp decline in revenue from the installation of façade systems in Hong Kong; (ii) increased employee retention costs due to delays in construction; (iii) the Group's construction quality as a subcontractor failed to meet high defect repair costs; and (iv) a number of subcontractors withdrew from unfinished projects midway, causing the company to take over and complete related projects, resulting in higher labor costs.