On June 21st, Gelunhui reported that Rongzun International Holdings (01780.HK) is expected to record an after-tax loss of about 9 to 12 million Hong Kong dollars for the year, based on the current information available to the board of directors and the preliminary review of the unaudited comprehensive management accounts of the Group ending March 31, 2024. The after-tax surplus for the year ended March 31, 2023 was about 5.2 million Hong Kong dollars.

The expected loss for the year is mainly due to the increase in direct costs of a civil engineering branch project. The increase in direct costs is mainly due to (i) unexpected complexity of the project resulting in a large amount of additional subcontracting costs; and (ii) major changes in project design and engineering plans resulting in the reconstruction of some architectural engineering.