BAGUIO GREEN (01397) released a profit warning, indicating that based on currently available information and a preliminary review of the unaudited consolidated management accounts for the six months ending June 30, 2026 (the reporting period), the group expects to record an after-tax profit of between HK$27 million and HK$30 million.

This represents a decrease of approximately 54% to 49% compared to the HK$58.8 million after-tax profit recorded in the corresponding period ending June 30, 2025 (the prior period).

The decline is primarily attributed to lower revenue and profit margins, resulting from intensified competition for certain government contracts. Some market participants have adopted extremely aggressive and commercially unsustainable pricing strategies.

In response, the group maintains a prudent and disciplined bidding strategy, focusing on delivering high-quality, innovative, and differentiated services to secure healthy profit levels.