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PanAsialum Holdings Company Limited
榮 陽 實 業 集 團 有 限 公 司
(incorporated in the Cayman Islands with limited liability)
(Stock Code: 2078)
PROFIT WARNING
This announcement is made by the Company pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO.
The Board wishes to inform shareholders of the Company and potential investors that based its preliminary assessment of current information available, the Company records an increase in loss before income tax in the consolidated financial results of the Company for the ten months ended 31 October 2019 as compared to the loss before income tax for the corresponding period in 2018.
Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.
This announcement is made by PanAsialum Holdings Company Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) (the "SFO").
The board of directors of the Company (the "Board") wishes to inform shareholders of the Company (the "Shareholders") and potential investors that based on its preliminary assessment of the information currently available, the Company records an increase in loss before income tax in the consolidated financial results of the Company for the ten months ended 31 October 2019 of approximately 108%, as compared to the loss before income tax of approximately HK$188 million for the corresponding period in 2018.
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The Board believes that the said increase in the loss before income tax is primarily due to (i) a decrease in gross profit contribution due to trade war and fierce market competition; (ii) higher finance cost from borrowings associated with the Group's on-going acquisitions and expansion; (iii) an increase in operating expenses especially the increase in employee benefit expenses; and (iv) an increase in operating expense due to the relocation of the Company's production facilities.
The Board wishes to emphasize that the Company is still in the process of finalising its consolidated annual results for the year ending 31 December 2019. The information in this announcement are based on the Board's preliminary assessment of current information available to the Company which have not been audited or reviewed by the auditors of the Company and may be subject to adjustments. Shareholders and potential investors are advised to refer to the Group's annual results for the year ending 31 December 2019 which is expected to be released in March 2020 for full details of the Group's financial performance.
Shareholders and potential investors are advised to exercise caution when dealing in the shares in the Company.
On behalf of the Board of
PanAsialum Holdings Company Limited
Cheung Wah Keung
Independent Non-Executive Chairman
Hong Kong, 12 December 2019
As at the date of this announcement, the executive directors of the Company are Mr. Gao Mingjie, Mr. Wong Kwok Wai Eddy and Ms. Li Jiewen; and the independent non-executive directors of the Company are Mr. Mar Selwyn, Mr. Leung Ka Tin and Dr. Cheung Wah Keung.
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