Yongnam Holdings issues profit warning

The board of Yongnam Holdings has advised that the group is expected to record an operating loss, notwithstanding a healthy increase in revenue.

This is mainly due to two factors: 

- Cost overruns from three on-going projects which pared operating margin to new lows;

- A significant non-recurring one-off loss on disposal of some fixed assets that eroded the already thin bottom-line profit for the quarter.

This notwithstanding, Yongnam is expected to report a net profit for the full year, albeit significantly lower than in 2012. Further details will be disclosed when it releases its third quarter financial statement on Nov 11.