Precision engineering services and electronics manufacturing firm Santak Holdings has issued a profit warning for the six months ended Dec 31.
While turnover is expected to be higher compared with the previous corresponding period, the company still expects to report a loss. This is due to a substantial increase in expenses from the expansion of its operations.
The company added two new factory facilities to carry out precision-machined component projects, and this has increased operating costs. This, combined with price erosions, contributed to the loss, said Santak in an exchange filing yesterday.
The group's results are expected to be released around the middle of next month.
Agri-business group Wilmar's unit Yihai Kerry Investments has entered into two joint-venture agreements with Singapore Food Industries (SFI) to supply food to the Chinese market.
SFI is a wholly-owned subsidiary of flight service provider Sats.
The two joint-venture partners will incorporate an investment holding company and an operating company in China. The investment holding company will have a registered capital of 230 million yuan (S$50 million), while the operating company's registered capital will be 200 million yuan.
SFI will have a 60 per cent stake in each of these companies, while Yihai Kerry Investments will hold 40 per cent.
Developer GuocoLand's second-quarter net profit dipped 8 per cent to $39 million on lower revenue.
Turnover for the three months ended Dec 31 declined 33 per cent to $239.5 million due to a one-off gain from the sale of an office tower in Shanghai Guoson Centre in the previous corresponding quarter. This was partially offset by revenue recognised from DC Residency in Malaysia, as its temporary occupation permit was obtained in November.
Earnings per share fell to 3.29 cents, down from 3.61 cents in the corresponding period a year ago. Net asset value per share was $2.99 as at Dec 31, up from $2.65 as at June 30.
The company said it expects a challenging year ahead. "The group will continue to focus on sales and leasing of its current projects while being watchful for investment opportunities," it said in its exchange filing.