KUALA LUMPUR: Hong Leong Industries Bhd has reported a net loss of RM104.6 million in the fourth quarter ended June 2017, from net profit of RM69.5 million in the same period a year ago due to one-off full impairment of its investment in Malaysia Newsprint Industries (MNI).
The impairment amounted to RM172 million, which is the group’s carried amount of investment in MNI.
Going forward, the company said it will no longer required to account for the future results of MNI.
“In the event of any residual value from the liquidation process, the group will recognise any recoveries in future periods,” it said.
For the full-year period, the company managed to remain in the black with net profit of RM103.1 million albeit lower than RM247.2 million in the corresponding period a year ago.
Hong Leong Industries recorded revenue of RM2.28 billion for the whole financial year ended June 2017, higher than RM2.19 billion a year ago.
“Barring any unforeseen circumstances, the board expects the group’s performance for both the consumer products and industrial products segments to be satisfactory for financial year ending June 2018,” the company said in a filing to Bursa Malaysia.