B & D STRATIGATIC (01780) issued an announcement, as of 2022 9...
According to the Zhitong Finance App, B & D Strategic (01780) announced that compared with the comprehensive net profit of about HK$8.8 million for the six months ended September 30, 2022, the Group is expected to achieve a comprehensive net loss of not less than HK$24 million in the six months ending September 30, 2023.
According to the announcement, the change from profit to loss was mainly due to a 50% increase in direct costs in the Civil Engineering Division and the Alteration and Addition Division during this period, as well as a decrease in gross margin. The increase in direct costs was mainly due to continuous changes in the design and construction plan of a project in the Alteration and Addition Division, which generated a large amount of additional subcontracting costs to keep up with the progress of the project; and the unexpected complexity of a project in the Civil Engineering Division, which caused a large number of additional subcontracting costs; and a number of construction projects in the Civil Engineering Division had to be reconstructed due to significant changes in design and construction plans, and since delays in completion of the project would incur additional subcontract costs and indirect costs, loss-making contract provisions for the project had been made.