HanKore in the red; Memstar profit dives; Moya profit up

THREE water companies reported their earnings yesterday for the three months ended March 31, with two of them recording lower earnings.

China-based HanKore Environment Technology Group yesterday posted a net loss of 111.9 million yuan (S$22.5 million) for its third quarter; a year ago, its net profit was 31.8 million yuan.

The loss came despite a 56.3 per cent increase in revenue to 125.7 million yuan, as the group's profitability was hit by one-off non-cash fair-value loss and non-recurring expenses. These included a fair-value loss of 110 million yuan incurred by the issuance of Tranche 2 shares in the acquisition of Jiangsu Tongyong Environment Engineering Co and the exercise of warrants, as well as administrative expenses from the employee share option issued by the group last Nov 15, and professional fees relating to the acquisition of China Everbright International's water-treatment assets.