Hengyang Petrochemical Logistics' auditors flag firm's going concern uncertainty
THE ability of China-based Hengyang Petrochemical Logistics to operate as a "going concern" is in doubt, said its auditors BDO LLP.
The group had incurred a net loss of about 13.4 million yuan (S$2.8 million) for the 2015 financial year, and its current liabilities then exceeded current assets by about 430.9 million yuan.
"These conditions indicate the existence of material uncertainties that may cast significant doubt about the group's and the company's abilities to continue as going concerns," said BDO.
Hengyang Petrochemical Logistics' directors, however, believe the firm has "adequate liquidity" for its working capital requirements for the next 12 months, based on its enlarged storage capacities and expected orders from major customers.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Universal Music Group reaches new licensing agreement with TikTok
Sumitomo to bolster shareholder returns in new mid-term plan
US Fed ‘less hawkish’ than expected; Singapore banks, net cash companies likely to outperform
ST Engineering bags more than S$175 million in contracts to upgrade Singapore’s public bus fleet
ING unveils 2.5 billion euros buyback as profit beats estimates
Prosper Cap halts operations at UK hotel after fire breaks out