[Caihua Social News] HPC HOLDINGS (01742.HK) announced that due to the re-outbreak of the COVID-19 global pandemic ("pandemic") in 2021, according to the preliminary assessment of the information available to the Group, the Group expects that the profit attributable to company owners for the year ended October 31, 2021 will be significantly reduced by about S $940 compared with the unaudited results for the six months ended April 30, 2021. From a profit of about S $4.7 million to a loss of about S $4.7 million. Overall, the group's annual net loss is expected to be about S $5 million, a further loss of about 7 per cent compared with the audited annual results for the year ended 31 October 2020.
The expected significant decrease in profit is mainly due to (I) the COVID-19 pandemic caused by Delta mutant broke out again in Singapore and Malaysia from June 2021 to December 2021, resulting in an increase in logistics costs and material prices in 2021, which had a significant impact on the Group's performance in the second half of the financial year ended October 31, 2021. (ii) the company's direct impact on regulatory changes has been underestimated, and the gradual slow recovery of socio-economic activity in the Malaysian states has limited the productivity and on-time delivery capacity of several suppliers in the Group's materials supply chain; (iii) taking into account the above factors, a provision of S $3.88 million is made for foreseeable losses.