Emerging Towns and Cities, Hong Lai Huat warn of FY20 losses

Uma Devi

Published Fri, Jan 29, 2021 · 06:31 PM

PROPERTY developers Emerging Towns & Cities Singapore (ETC) and Hong Lai Huat Group have sounded profit warnings for FY 2020 ended December last year, saying they expect to report losses for the full fiscal year.

ETC attributed the upcoming loss to a combination of the recognition of fair value losses on its investment properties at its Golden City project which are non-cash in nature, as well as lower revenue recognised for the sales property units in the same project.

Meanwhile, Hong Lai Huat said the net loss for FY 2020 is due primarily to a decline in revenue resulting from the adverse impact of the Covid-19 pandemic

Both companies said they are still in the process of finalising results for FY 2020, and that these profit guidances are based on preliminary reviews of the their unaudited financial results.

Shares in ETC closed 1.5 per cent or 0.1 Singapore cent higher at 6.7 Singapore cents on Friday, while Hong Lai Huat shares ended the trading day unchanged at 11.9 Singapore cents.