ISP HOLDINGS (02340) has announced that the Group expects to report the following financial results for the year ending December 31, 2025 (the current year): (1) Revenue for the current year is expected to increase by approximately 45% to 50% compared to the year ending December 31, 2024 (the previous year); (2) Gross profit for the current year is projected to rise by about 120% to 125% compared to the previous year; and (3) The loss attributable to the company's equity holders for the current year is estimated to be between HK$47 million and HK$51 million, whereas the loss for the previous year was approximately HK$33.5 million.

The increases in revenue, gross profit, and the resulting loss for the current year are attributed to a combination of factors: (1) Revenue growth is driven by a healthy replenishment of workload following new contracts secured during the current and previous years; (2) Significant interest income was recognized during the current year from restricted cash pledged as a performance bond for Fulfill Insurance (Hong Kong) Limited, along with fair value gains on financial assets; (3) The company achieved cost savings on certain subcontracting projects, as subcontractors agreed to accept reduced final payments for completed work; (4) However, due to a challenging and uncertain business environment in Hong Kong, coupled with instability among prominent developers facing financial constraints, credit risks have risen significantly, particularly in the construction sector. To mitigate increased potential default risks, the company has made substantial provisions for bad debts and expected credit losses on receivables and contract assets during the current year; and (5) Significant costs were incurred in relation to certain litigation and arbitration cases, the hearings for which were completed within the current year.