Forise International says it expects higher loss for FY2019

FORISE International Limited expects to report a significantly higher loss for the financial year ended Dec 31, the Mainboard-listed company said in a profit guidance issued on Monday.

The losses are mainly due to lower corporate advisory revenue recognised in Q4 2019 and increased impairment charges for loans receivable from an associated company. The company offers strategic planning, corporate advisory, financial restructuring advisory, management consulting services and financial factoring services.

The lower advisory revenue resulted from the continued slowdown in Chinese corporate activities, the US-China trade war further dampening business activities and Beijing's deleveraging policy that limited credit access for businesses in the financial sector.

Meanwhile, the slowdown of the Chinese economy impacted Forise's associated company Le Rong Financial Factoring Company, resulting in Le Rong being slow in its loan repayment to Forise International. The group also took into account forward-looking uncertainties arising from the Covid-19 outbreak in assessing its impairment charges.

Forise International is finalising its financial results for Q4, and will disclose more details of its financial performance when it releases its unaudited financial results on or before Feb 29.

Forise shares last traded on Feb 4, closing down 0.1 cent or 33.3 per cent to S$0.002.