Eu Yan Sang deepens net losses in Q4

EU Yan Sang deepened its losses for its fourth quarter ended June 30, 2016.

In its financial results released on Monday, it posted a net loss of S$14.1 million, from a net loss of S$3.6 million a year ago.

This was despite the traditional Chinese medicine group reporting a slight 2-per-cent increase in revenue to S$73.5 million, which was mostly due to higher wholesale revenue in Hong Kong.

The lower earnings was due to lower operating income (down 28 per cent to S$845,000), higher impairment loss on property, plant and equipment, intangible assets and other assets (of S$6.8 million versus S$417,000 a year ago) and a 94 per cent drop in fair value gain on investment properties to S$388,000.

For the higher impairment loss, the group said it was related to the writedown of the group's Australia business amounting to S$6.3 million due to difference between its carrying amount and value-in-use.

Other impairment losses include impairment of property plant and equipment of loss-making stores in Hong Kong amounting to S$145,000.