Shun Tak expecting annual net loss

Hong Kong-listed conglomerate Shun Tak Holdings Ltd expects the company will fall into the red for its 2016 fiscal year, ended December 31, it told the Hong Kong Stock Exchange last week.
According to the company’s filing, the estimated annual net loss is due to ‘the decline in revaluation of investment properties which is non-cash in nature.’
The company added that the decrease in its revenue recognition of the sale of development properties was also a factor driving the loss.
“The Board believes that such decline in revaluation and decrease in revenue will not have any impact on the business operations of the group,” the company claimed however in the filing.
For its 2015 fiscal year, Shun Tak saw its profit attributable to owners of the company reach HK$745 million (US$92.8 million), plummeting by 83.3 per cent down from HK$4.5 billion for the 2014 year.
In fact, the conglomerate already posted a net loss of HK$53 million for the first half of its 2016 fiscal year, compared to a net profit of HK$387 million for the same period in 2015.
The annual results of the company are expected to be published in late March, the filing reads.