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Hafary, AF Global and Sino Grandness issue profit warnings
THREE mainboard-listed companies on Monday warned that they would sink into the red in their upcoming financial results.
Building materials supplier Hafary Holdings and property and hospitality company AF Global said they expect to report H1 losses for the six months ended June 30, 2020, while Chinese canned vegetable and fruits producer Sino Grandness Food Industry Group expects to report Q1 losses for the three months ended March 31, 2020.
Hafary said its loss is mainly attributable to lower revenue recognised by the company due to a slowdown in business volumes arising from the Covid-19 pandemic. It reported a H1 profit of about S$3 million last year.
The group's business operations in Singapore were disrupted during Singapore's "circuit-breaker" measures from April 7 to June 18, Hafary said. It will announce its results on or before Aug 14.
AF Global said its expected loss was mainly due to the group’s hospitality business, which was adversely impacted by the global pandemic and ensuing economic crisis. Its profit for H1 2019 was about S$19.7 million.
Sino Grandness said its loss was due primarily to the negative impact of the pandemic on its operating regions. Earlier in June, it said two key, wholly-owned subsidiaries in Hubei - which had ceased operations in February amid the pandemic - had received approvals from the relevant authority to resume operations, but that operations had not resumed fully due to the imposition of travel restrictions and precautionary measures, as Hubei is a high-risk area for Covid-19.
Its headquarters in Shenzhen was also forced to shut in February as part of measures by the Guangdong government to prevent the spread of Covid-19.
Restrictions on transportation and movements within China have also limited the group’s ability to provide products for its customers, it said. Sino Grandness reported a Q1 profit of about 12.8 million yuan (S$2.5 million) last year.
Notwithstanding, Sino Grandness management said it believes the group’s working capital position remains healthy, with its unaudited cash and bank balance standing at about 600 million yuan as at March 31.
Shares of Hafary Holdings ended Monday unchanged at 13.8 Singpore cents. Shares of AF Global rose 0.5 cent or 4.8 per cent to 10.9 cents before the announcement, while shares of Sino Grandness finished at 2.3 cents, up 0.1 cent or 4.6 per cent.