Sam Woo Construction Group Limited provided earnings guidance for the six months ended 30 September 2022. The Group expects to record a net loss of not less than HKD 80 million for the six months ended 30 September 2022 (the "Period"). Such expected net loss arose mainly because contract revenue decreased more than 40% during the Period as compared to that of the last year and therefore was not enough to cover the construction costs and overheads of the Group incurred during the Period.

The management considered that there were several factors leading to such result. (1) Some contract customers had not yet certified the value of construction works in response to the Group's application for interim payments. Therefore, the contract revenue recognised by the Group might not be able to cover all the contract costs incurred in the same period.

(2) There were gap periods between the completion of East Kowloon Public Housing project and West Kowloon Cultural District project and the commencement of Kai Tak Public Housing project which was awarded in late July. Therefore, the reduced contract revenue during the gap periods was not enough to cover the overhead costs such as equipment depreciation and labour costs.