Hong Lai Huat CTO is guiding for a net loss in the FY2022 ended Dec 31, 2022.
The net loss is mainly due to non-cash items. This includes the partial write-off for its cassava biological assets, certain non-operational fixed asset, impairment losses on an old equipment sale in Cambodia and minimal losses incurred towards the operation in Cambodia due to the lower sale of its property units during a “challenging” year.
On Dec 22, 2022, the group indicated that the FY2022 had posed a “huge challenge” to its business in Cambodia. At the time, the group cited reasons such as the rising risk of a global recession, inflation, rising bank interests and higher mortgage rates among other factors.
Shares in Hong Lai Huat closed 0.6 cent lower or 8% down at 6.9 cents on Feb 17.
