Straco Corporation is expecting to report a “substantial net loss” for the FY2022 ended Dec 31, 2022, compared to the net profit in the FY2021.
This is due to the lower revenue from the group’s China attractions during the year due to the additional Covid-19 measures such as lockdowns within the country.
The net loss was also attributed to the material exchange losses due to the weaker renminbi (RMB) against the Singapore dollar (SGD) in the FY2022.
Other reasons behind the net loss include the lack of land lease relief and government grants from job support schemes and tourism vouchers in the FY2022 compared to FY2021, as well as a decrease in other income due to a one-off arbitration award for an insurance claim that was received in FY2021.
As at 4pm, shares in Straco are trading 2 cents lower or 4% down at 48 cents.
