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SGX grants Hong Leong Asia time extension to release FY19 results
HONG Leong Asia has been granted a time extension by the Singapore Exchange (SGX) to release its FY2019 results by March 31 on the back of the fallout from the Covid-19 outbreak.
The group sought a waiver as it has major operations in China, with more than 80 per cent of its revenue contributions coming from its business units there.
Due to the virus outbreak in China, the Chinese government had extended the Lunar New Year holiday to Feb 10 in various cities where the group operates, and put in place various measures, including city lockdowns, travel restrictions and quarantine measures to contain the spread of the virus.
The financial records of the group's key subsidiaries in China are kept at the offices of these units which operate mainly in China. Employees, including key financial personnel, of the China subsidiaries are facing "logistical difficulties and significant delays" in returning to their offices after the Lunar New Year holiday, and may be subject to further quarantine measures upon their return depending on the actions taken by local governments to reduce the movement and concentration of people, said Hong Leong Asia.
Due to the travel restrictions and quarantine requirements, the external auditors of the China subsidiaries are similarly facing issues in arranging visits to the units' offices to perform the necessary audit procedures. Completion of the audit process, in accordance with the original planned timeline, will therefore not be possible with these disruptions, said the group.
As a result, Hong Leong Asia said that it would require more time to finalise its FY2019 results.