Sino Construction issues profit warning on FY11 results

As revenue from its newly acquired thermal plant operator RELI fell short of expectations.

According to the company statement:

We completed the acquisition of DAQING SUNSHINE RELI THERMAL CO., LTD on 28 September 2011. Based on a preliminary review of the unaudited financial results of RELI, the revenue fell short of management’s projections due to lower take up rates of existing property developments in that area as well as a deferral in new builds due to measures taken by the central government to cool the property market in the PRC. Accordingly, the intangible assets comprising the licence to operate the heating plant and network arising from the acquisition might be impaired.

Consequently, the expected profits from the operations of RELI will not be sufficient to offset the operational loss incurred by our existing core business of construction and sale of concrete and bricks given the onset of winter in the northern hemisphere. As such, we expect the Group to extend the losses already recorded and announced in the first nine months of the year ended 30 September 2011.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia