SINGAPORE - Hong Leong Asia, the trade and industrial arm of Hong Leong Group, warned on Tuesday (Feb 16) that it expects to report a loss for the financial year ended Dec 31.
The company had reported a loss of S$16.7 million for the third quarter ended Sep 30 last year. The expected full-year deficit is due mainly to the continuing losses incurred by its consumer products unit.
Revenue for the year at this unit has declined 14.7 per cent owing to the weaker home appliance market in China, the general slowdown in the mainland's economy, and over capacity in the industry leading to competitors slashing prices to gain market share, said Hong Leong Asia in in a filing with the Singapore Exchange.
Profits generated by the other divisions would not be sufficient to offset these losses, it stated.
The board advises shareholders and investors to exercise caution when dealing in the company's shares.