Hong Kong recruitment firm Kos International (8042: HKG), issued a profit warning on Friday for the nine months ended 30 September 2023.

The group is expected to record a net profit for the nine months ended 30 September 2023 of approximately HKD 2 million (USD 255,684), as compared to a net profit of approximately HKD 18.5 million (USD 2.3 million) for the corresponding period in 2022.

The forecasted drop in net profit is mainly attributable to the decrease in revenue generated from recruitment services as well as the increase in staff costs recorded as the group is undergoing expansion of its Hong Kong and Singapore operations. The company also cited its Singapore operation which was in its commencement stage and the group will need time to establish itself in the local market in order to contribute positively to its results.

Kos added that it is still in the process of finalising its unaudited consolidated results for the nine months ended 30 September 2023.