BAGUIO GREEN (01397) issued a profit warning, expecting a mid-term post-tax profit between HKD 27 million and HKD 30 million, a decrease of approximately 54% to 49% compared to the same period last year.

BAGUIO GREEN (01397) announced that, based on currently available information and a preliminary review of the Group's unaudited consolidated management accounts for the six months ending June 30, 2026 (the reporting period), the Group expects to achieve a post-tax profit of between HKD 27 million and HKD 30 million during the reporting period, representing a decrease of approximately 54% to 49% compared to the HKD 58.8 million for the six months ended June 30, 2025 (the previous period). This decline is mainly attributed to a decrease in revenue and gross profit margin, blamed on intensified competition for certain government contracts, as some market participants adopt aggressive pricing strategies that are commercially unsustainable. The Group maintains a prudent and disciplined bidding strategy, focusing on providing high-quality, innovative, and differentiated services to achieve a healthy level of profitability.