ZCLOUD TECH Issues Profit Warning, Anticipates Annual Net Profit to Drop to at Least HK$6.5 Million

ZCLOUD TECH-NEW (ASX: 09900) has announced a profit warning, projecting a significant decrease in its annual attributable profit.

The company expects to report a net profit attributable to shareholders of no less than HK$6.5 million for the 2026 fiscal year ending March 31, 2026.

This represents a substantial decline compared to the approximately HK$31.1 million profit achieved in the previous corresponding period ending March 31, 2025.

Key Drivers for the Decline

The anticipated profit reduction is attributed to several key factors, including a decrease in revenue and gross profit.

This was primarily caused by additional costs from extra work performed during and after the completion of certain building construction service projects.

Other contributing elements include rising material costs and a reduction in the fair value of financial assets measured at fair value through profit or loss.

The company also noted a decrease in its share of profits from an associate, alongside the net impact of increased administrative expenses and impairment losses under an expected credit loss model, partially offset by some reversals.