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Profit warnings issued by another 3 companies
AT least three Singapore-listed companies warned on Wednesday of a potential net loss for the fiscal year ended Dec 31, 2015, following a train of companies that have done likewise this week.
Delong Holdings said its expected net loss for the fourth quarter and full year ended Dec 31 was due mainly to a sustained weakening in steel prices amid excess capacity in the industry, which resulted in intensified price competition among steel manufacturers in China and higher cost of sales.
Hosen Group said on Wednesday that its expected net loss for fiscal 2015 stemmed mainly from the foreign exchange loss on the depreciation of Malaysia ringgit, allowance for additional inventory obsolescence and start-up cost incurred in Malaysia by Hosen Chocolate Sdn Bhd, a newly incorporated subsidiary in FY2015.
As for NauticAWT Limited, the group said its expected net loss primarily arose from substantial one-off professional fees incurred in relation to the initial public offering exercise of the group to list on the Catalist board on July 23; losses suffered by the subsurface and wells business unit that was acquired by the company in November 2014, its associated restructuring costs as well as impairments on the business unit's tax assets; write-off of bad debts, unbilled work undertaken and obsolete stock associated with projects that did not proceed due to weakened market conditions.