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Yongnam, Delong, United Food, Abterra and China Environmental Resources issue profit warnings
The following companies issued profit warnings on Tuesday evening.
Engineering and construction services provider Yongnam Holdings said that it expects to report a net loss for its fourth quarter and the 2016 financial year. The loss is mainly due to "cost overruns for the Senoko Food Hub project and provisions made in anticipation of lower negotiated awards in variation orders for certain projects", it said. The firm will release its results on Feb 28.
Steel producer Delong Holdings is expecting a loss for the fourth quarter, but a net profit for the full year. The anticipated loss is due to an impairment charge on its subsidiary, Laiyuan County Aoyu Steel, because of plans by the government to reduce steelmaking capacity in Hebei province. Its results will be released on Feb 28.
Soya bean product supplier United Food Holdings said that it expects a loss for both the fourth quarter, as well as for the full year, owing to the continuing stoppage of soya bean production and a further gross loss in animal feed products. Its results will be released no later than March 1.
Coking coal and iron ore trader Abterra, meanwhile, is expecting a loss for the 2016 financial year, due to loss in divestment of investment properties and operating expenses. The group will announce its results on Feb 24.
China Environmental Resources expects losses to narrow for the six months ended Dec 31, as compared to the corresponding period in 2015. This is thanks to the combined effects of an increase in gross profit from a rise in income from the car distribution business, an increase in net fair value changes of financial assets, and a fall in general and administrative expenses. Its results are expected to be announced on Feb 27.