Hong Kong recruitment firm Kos International (8042: HKG), issued a profit warning yesterday for the six-month period ended 30 June 2023.

The company is expected to record a net profit of approximately HKD 1.2 million (USD 153,662) in H1 2023, compared to a net profit of approximately HKD 12.4 million (USD 1.6 million) for the corresponding period in 2022. The drop in net profit is mainly attributable to the decrease in revenue generated from the group’s recruitment services in Mainland China.

Kos International also blamed an increase in staff costs as the group is undergoing expansion in its Hong Kong and Singapore operations.

Furthermore, it added that the group’s Singapore operation was in its ‘commencement stage’ and the group will need time to establish itself in the local market in order to contribute positively to the group’s results.

The company said it is still in the process of finalising its unaudited consolidated results for the six months ended 30 June 2023.

Following news of the profit warning, Kos International last traded today at HKD 0.053 (USD 0.0068), down 24.29% on the day. The company’s shares did not trade on Monday. Kos International has a market cap of HKD 40.28 million (USD 5.16 million).