Summary by Futu AI
Mecom Power Limited ('Mecom Power') issued a profit warning, forecasting a profit of approximately MOP 10.4 million to MOP 12.8 million for the six months ended June 30, 2024, a significant decrease from MOP 38.2 million in the same period in 2023. The Board of Directors pointed out that the reduction in revenue was mainly due to the decline in construction business revenue, the decrease in large-scale construction projects operated by gambling and resort operators, and the adjustment of pricing strategies and profit margins to maintain competitiveness, leading to a decrease in project gross margin. In addition, inflation has led to an increase in construction costs, and the average price of thread steel has also decreased, resulting in a reduction in profit for the steel structure business. The company emphasized that this is a preliminary assessment based on unaudited comprehensive management accounts, and reminds shareholders and potential investors to act cautiously when buying and selling shares. Mecom Power will release its interim performance announcement by the end of August 2024.
