HUASHENG INTL (01323) announced that the group expects to record an unaudited net loss attributable to shareholders of not less than HK$41 million for the six-month period ending September 30, 2025, compared to a net loss of approximately HK$24.4 million for the corresponding period ending September 30, 2024.

The board attributed the increased net loss primarily to the combined impact of the following factors: 1. The downturn in China's real estate market and slowdown in construction activities negatively affected the group's concrete business, leading to reduced demand for ready-mix concrete products. Consequently, revenue declined significantly by approximately HK$38.6 million, or 19.3%, compared to the corresponding period. 2. Rising raw material costs and intensified price competition continued to pressure the group's gross margin, resulting in a decrease of approximately HK$24.5 million in gross profit. 3. Increased share of losses from associates by approximately HK$5.5 million during the period. 4. A reduction in financing costs by approximately HK$5.8 million due to lower total borrowings compared to the corresponding period.