SINGAPORE - Industrial conglomerate Hong Leong Asia has posted a net loss of S$18.2 million in the second quarter, a slight improvement from the S$18.3 million net loss incurred in the same period a year earlier.
The profits from China Yuchai International, its diesel engines unit were not sufficient to offset the loss incurred by Henan Xinfei Electric Co, which sells refrigerators.
Revenue in the three months ended June 30 was S$1 billion, up 3.5 per cent from a year earlier as sales of truck engines picked up although this was partially offset by lower revenue from the building materials unit in Singapore and Malaysia.
Xinfei was also hurt by price competition in China.
Loss per share improved to 4.86 Singapore cents compared to 4.89 Singapore cents a year earlier.
Net asset value per share was 173.83 Singapore cents as at June 30, down from 186.79 Singapore cents as at Dec 31 last year.
The group said in an exchange filing on Aug 11: "Whilst Yuchai remains a bright spot, the difficult and challenging market conditions facing BMU and Xinfei will continue to affect the group's performance."
The group expects the performance of its business units to be weak in the coming quarters of 2017.
"The group will continue to explore other strategic options and potential alliance opportunities," it said.