Wan Kei flags decrease in interim net profit

Wan Kei Group Holdings Ltd., an investment holding company which provides foundation and ground investigation fieldworks for public and private sectors in Hong Kong and Macau, is anticipating a decrease in its net profit for the six months ended September 30, according to the group’s filing with the Hong Kong Stock Exchange on Monday evening.
The company stated in the announcement that the decrease in revenue of foundation works of the group during the period is one of the primary reasons for the decrease in its interim net profit.
In addition, the firm registered a drop in gross profit margin of the newly tendered foundation works projects during the interim period as a result of the keen competition in the industry causing the decline in profit.
For the same period last year Wan Kei posted an interim net profit of HK$25.9 million (US$3.2 million), according to the filing.
The Hong Kong-listed firm operates Wan Kei (Macau) Civil and Foundation Construction Company Limited in Macau. The local subsidiary, established in 2004, principally deals with construction site foundation engineering and bore pile pre-drilling works in the MSAR.