Kingdom Holdings Limited Provides Preliminary Unaudited Consolidated Earnings Guidance for the Year Ending 31 December 2020
December 18, 2020 at 04:51 am EST
Kingdom Holdings Limited provided preliminary unaudited consolidated earnings guidance for the year ending 31 December 2020. The company expects that there will be a net loss of not more than RMB 22 million for the year ending 31 December 2020 as compared to a net profit of RMB 155,765,000 for the year ended 31 December 2019. The expected net loss for the year ending 31 December 2020 is primarily attributable to (1) the COVID-19 pandemic has affected the United States and European markets in particular, resulting in weak demand and lower prices for linen
yarn; (2) suspension of capitalization of the borrowing costs due to the interruption of the Ethiopia project resulting from the COVID-19 pandemic in accordance with the requirements of "International Accounting Standard (IAS) 23 Borrowing Costs"; and (3) the continuous depreciation of United States Dollar against the Renminbi in 2020.