SINGAPORE (Feb 28): Hong Leong Asia reported FY17 losses of $66.5 million, 6.7% smaller than the net loss of $71.3 million a year ago.
The full-year net loss included an impairment of $24.9 million related to the restructuring exercise of its Xinfei consumer products unit.
Revenue grew 8.1% to $4 billion mainly due to higher sales recorded by its engine-manufacturing unit China Yuchai International.
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This came on the back of increase in engine sales due to a rebound in the sales of truck and off-road engines, while bus engines sales softened.
Gross profit margin fell slightly to 20.3% from 20.5% a year ago.
Other income rose fourfold to $133.4 million led by disposal gains from HL Global Enterprises, a subsidiary of China Yuchai; a gain on disposal of intangible asset and higher interest income.
Selling and distribution expenses fell 1.1% to $356.3 million, while R&D expenses grew 1.7% to $135.2 million due to higher by China Yuchai.
General and administrative expenses grew 11.9% to $216.3 million due to higher staff costs in China Yuchai arising from its retrenchment exercise and impairment of an intangible asset.
As a result, profit after tax was $126.1 million in FY17 compared to $22.8 million in FY16.
In its outlook, Hong Leong says it expects 2018 to be challenging.
The group intends monitor the market environment closely and endeavour to mitigate adverse effects accordingly, while exploring other strategic options and potential alliance opportunities; maintaining its cost control discipline; and continuing its organisational restructuring initiatives.
Shares in Hong Leong Asia closed 3 cents lower at $1.10.
