Gelonghui, June 20, 丨 Xunhe Group (01591.HK) announced that the company expects to record a net profit of about HK$16 million to HK$20 million for the year ending March 31, 2023, while the Group recorded a net loss of about HK$4.5 million for the year ending March 31, 2022.

The expected change from loss to profit is mainly due to (i) the increase in earnings from the Group's core business in the foundation industry; (ii) the receipt of government subsidies through employment insurance schemes; and (iii) the net recovery of impairment losses on related financial assets and contract assets due to the recovery of a number of long-outstanding trade receivables that have been depreciated in previous financial years.