Rongzun Projects Loss After Costly Engineering Setback

B & D Strategic Holdings Limited (HK:1780) has released an update.

Rongzun International Holdings Group Limited has issued a profit warning, expecting to post a loss of HK$9 million to HK$12 million for the year ended 31 March 2024, a stark contrast to the HK$5.2 million profit reported the previous year. The anticipated loss is largely due to increased direct costs from a complex civil engineering project, including substantial additional subcontracting costs and rework due to significant design and construction plan changes. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.

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