CONSTRUCTION firm Fung Cheung Kee Holdings continues to stay in a lost territory with its net sinking $37.2 million for the year ended March 31. This was a slight improvement, considering a net loss of $40 million for the year-ago period. Chairman Fung Cheung blamed the disappointing results on fierce competition among Hong Kong contractors, higher-than-expected increases in labour and material costs and increased borrowing costs. Loss per share was nine cents compared to 10 cents a year earlier. Unlike 1994, no dividend is to be paid. Turnover slid 12 per cent to $251 million. Taxation charges dropped significantly to $1.1 million from $10.5 million previously. Mr Fung said: 'Fierce competition among contractors put profit margins on contract works under severe pressure.' A higher-than-expected increase in labour and material costs further squeezed the already thin margins on certain fixed price contracts. The government's measures to cool down the property market also contributed to a decline in available contract work in the private sector. 'It is expected that trading conditions will remain difficult in the current year. However, management is confident that industry conditions have troughed and the future is encouraging,' Mr Fung said.