Hwa Hong Corporation issues profit warning for 4Q11 financial results

As trading of its investment securities did poorly in the last quarter of 2011.

According to a statement, the Group is expected to report a loss for the fourth quarter ended 31 December 2011 compared with a profit for the corresponding period in 2010 mainly due to (i) lower rental revenue due to refurbishment works on a residential property in the UK and our warehouse in Paya Lebar (ii) lower profit from trading of investment securities (iii) lower gain from disposal of RiverGate apartments due to a more cautious market following the introduction of additional buyers’ stamp duty by the Singapore Government and (iv) higher allowance for impairment losses on investment securities.

For the above-mentioned reasons, the Group is expected to report a significant decline in profit for the full year ended 31 December 2011 as compared with the corresponding period in 2010; but the Group will remain profitable for the full year ended 31 December 2011.