ZCLOUD TECH CON (09900) issues profit warning, expecting annual net profit attributable to shareholders to decrease by not less than HKD 6.5 million year-on-year.

ZCLOUD TECH CON (09900) announces that, relative to the profit of approximately HK$31.1 million for the year ended on March 31, 2025, the Group expects to achieve a profit attributable to owners of the Company of not less than HK$6.5 million for the financial year 2026 (ending on March 31, 2026). The decrease in expected profit is mainly due to (i) additional costs incurred during the completion of several projects providing building construction services and during the maintenance period resulting in a decrease in revenue and gross profit; (ii) increase in material costs; (iii) decrease in fair value of financial assets recognized in profit and loss; (iv) decrease in performance of a jointly controlled entity; and (v) impairment losses on administrative expenses during the year and expected credit loss under the credit model, resulting in a decrease in profit after deducting the reduced comprehensive impact.