KIN PANG HLDGS (01722) issued a profit warning, expecting a consolidated loss attributable to shareholders of not less than MOP 25 million for the first half of the year, marking a significant shift from profit to loss compared to the same period last year.

KIN PANG HLDGS (01722) announced that the Group expects to incur an unaudited consolidated loss attributable to owners of the Company of no less than 25 million Macau Patacas for the six months ending June 30, 2026 (the Period), compared to an unaudited consolidated profit of approximately 400,000 Macau Patacas attributable to owners of the Company for the same period in 2025. The Board believes that the expected loss for the Group for the six months ending June 30, 2026, is primarily due to the Groups financial performance shifting from a gross profit in the same period of 2025 to a gross loss in the current Period, mainly attributed to a decrease in the number of construction projects undertaken by the Group during this Period, resulting in a significant revenue decline of approximately 51%, and the Groups properties, plants, and equipment not being fully utilized. As a result, a substantial amount of unabsorbed fixed indirect costs (primarily depreciation expenses) has been directly deducted from direct costs; in addition, unforeseen project offset costs incurred from several construction projects have led to an increase in direct project costs.