The Sheung Yue Group (HKEX: 01633) has announced a profit warning. The company projects that it will record a net loss of approximately HK$23.9 million for the financial year ending March 31, 2026.

This figure represents a significant increase compared to the net loss of about HK$9.7 million reported for the previous financial year ended March 31, 2025.

Based on the information currently available, the board of directors attributes the anticipated larger net loss primarily to several key factors.

These include a reduction in the group's overall revenue and a decline in the gross profit margin across its contracted projects.

Additionally, the expected credit loss provision for financial assets and impairment losses recognized on the group's right-of-use assets have contributed to the forecasted financial result.