Guangnan (Holdings) Limited warns of profit drop

One factor was the significant decrease in exchange gain.

The board of directors of Guangnan (Holdings) Limited announced that the consolidated profit attributable to shareholders for the year ended 31 December 2012 is expected to have a substantial decrease as compared with that for the year of 2011.

Among the factors cited were the decrease in the other net income due to the significant decrease in the amount of write back of liabilities and the significant decrease in exchange gain due to the slower appreciation of Renminbi against the Hong Kong Dollar and the United States Dollar.

In addition, the announcement said that as a result of the substantial increase in the raw materials purchase cost of an associate of the Group, the Group will record share of loss of associates in 2012 as compared with share of profits of associates in 2011.