Hong Kong – Sinomax, a flexible foam maker with operations in mainland China, Vietnam and the US, is likely to make a loss of HK$31m ($4m) after tax in the first half of 2020.
The company, which made a first half profit of HK10.6m in H1 2019, made the announcement to the Hong Kong Stock Exchange.
Coronavirus had a big part in the business's decline in the half. 'The deterioration of result is mainly due to the slowdown in the group's business activities caused by the coronavirus outbreak and the increase in the amount of PRC withholding tax levied on the distributed profits of the company's PRC subsidiaries,' the company said.
Sinomax added that it does not think the loss will have any effects on its agreements with banks.
It expects to publish its first half numbers by the end of August 2020.
Currency Exchange: XE.com