Ruigang Construction (06816) announced that it is expected that the Group will achieve quite a bit for the year ending December 31, 2023...
According to the Zhitong Finance App, Ruigang Construction (06816) issued an announcement. It is expected that the Group will have a pre-tax loss of no less than HK$84 million for the year ended December 31, 2023, and a profit before tax of approximately HK$19.8 million compared to the year ended December 31, 2022.
According to the announcement, the shift in revenue from profit to loss for fiscal year 2023 was mainly due to (i) a drop in gross profit of about HK$44 million, mainly due to the fact that the main projects in the marine engineering business sector were largely completed in FY2022 and the newly signed projects did not make significant progress in FY2023, leading to a decline of about 60% in revenue; while potential projects in the general construction contracting business sector were delayed due to uncertainties in the Chinese property market, which led to a drop of about 20% in revenue; (ii) an increase of about HK$32 million in R&D related to the maintenance and idle operation of ships and equipment; (iii) R&D related to the maintenance and idle operation of ships and equipment; (iii) R&D related to the maintenance and idle operation of ships and equipment; Expenses increased by approximately HK$7 million; and (iv) financial expenses increased by approximately HK$10 million due to rising interest rates in the Hong Kong market. At the same time, the company is still evaluating whether certain assets may be depreciated. If additional provisions are deemed necessary, the expected losses in fiscal year 2023 will increase further.