Lumina Group (01162.HK) announced on June 25th that the company is expected to record a net loss of approximately HKD 29.8 million for the fiscal year ending March 31, 2024, while the net loss for the fiscal year ending March 31, 2023 is approximately HKD 24.4 million.

The board of directors believes that the increase in net loss is mainly attributable to the combined effects of the following: (i) the group's reduction in recognized revenue for the current fiscal year, due to (a) several ongoing projects being in their final stages; and (b) the delay in the time schedule for several new projects awarded in the current fiscal year, which are still in their preliminary stages, resulting in a decrease in the number of recognized projects for the current fiscal year; (ii) intense market contract competition leading to a decline in gross margin; (iii) a decrease in impairment losses for trade receivables and contract assets; and (iv) new investments in producing short videos and animations in China resulting in an increase in administrative expenses.