Crane and industrial machinery maker Yongmao Holdings warns that earnings for its 2HFY2022 ended March is likely to be “significantly lower” versus 2HFY2021 because of softer business conditions in China and fair value loss.
“The decline in net profits is due to lower revenue in China in light of the supply chain bottlenecks, a lacklustre property market and Covid-19 outbreak,” states the company on May 22.
“Land transportation and sea freight in China had increased significantly during the period under review due to supply shortage,” the company adds.
Yongmao says that it is expected to book a “significant” fair value loss on its financial assets, which might lead to a total comprehensive loss attributable to shareholders for 2H FY2022.
The company is expected to report its FY2022 before May 30 2022. It expects to remain profitable for the full year.
Yongmao shares last traded at 72 cents.
