Thelloy Development Group warns of significant net loss

Thelloy Development Group Limited (HKEX:1546) issued a profit warning today, announcing that it expects to record a net loss not exceeding HKD55 million for the year ended March 31, 2025. This contrasts sharply with the net profit of approximately HKD8.3 million reported for the previous year. The company attributes the anticipated loss to several factors, including the recognition of share of losses from joint ventures, lower overall gross profit margins on certain construction projects awarded in 2022 and 2023, and increased finance costs due to higher interest rates and additional bank borrowings. The company also experienced lower project margins due to heightened market competition and increased staff and labor costs stemming from extended project durations. The company advises caution when dealing in the shares of the company.