Recruitment firm Kos International (8042: HKG), based in Hong Kong, announced that it is expected to record a net loss for the year ended 31 December 2020 of approximately HKD 7.0 million (USD 0.9 million). This is compared to a net profit of approximately HKD 1.7 million (USD 0.2 million) for the corresponding period in 2019.

The expected net loss excludes the government subsidies of approximately HKD 5.9 million recognised in the year ended 31 December 2020 under the Employment Support Scheme and other subsidies under the government’s pandemic Fund in Hong Kong and Macau.

The group said the drop in net profit was mainly attributable to the on-going pandemic, resulting in suppressed demand and a sharp decline in the number of successful placements during the year, delay and/or cancellation of the client’s hiring plan under the poor business condition and overall unfavourable recruitment environment.

As a result, the revenue of the group for the year ended 31 December 2020 decreased by approximately 19% as compared to the year ended 31 December 2019.

The company said it is still in the process of finalising its unaudited consolidated results for the year ended 31 December 2020.

Shares in Kos International closed at HKD 0.04 (USD 0.005) yesterday, no change on the day. The company has a market cap of HKD 34.40 million (USD 4.43 million).