Asiaphos announced its profit guidance for its 1HFY2024 ended June 30 results. The group said that it expects to report a higher profit for 2QFY2024 as compared to previous 2QFY2023 and a profit for 1HFY2024 as compared to a loss in the previous 1HFY2023.
The reasons for the profits for 2QFY2024 and 1HFY2024 were mainly attributed to the fair value gain on other equity investment and the gain on transfer of foreign currency translation reserve upon the deconsolidation of a foreign subsidiary, Sichuan Rongdafeng Chemical, following the handover of control of the said subsidiary to Sichuan Rongda Yuexiang Chemical Group, related to disposal of the P4 Plant.
The group ceased the consolidation of Rongdafeng and accounted for the investment as other equity investment during 2QFY2024 as control has passed to Rongda when it made full payment for Rongdafeng (as announced on Feb 8); took over control of the board of directors of Rongdafeng on Mar 21 (which is pursuant to the Cooperation Agreement dated Mar 20 and subsequent supplemental agreements entered into between SMNPC and Rongda); and appointed its nominee as the Legal Representative of Rongdafeng (as announced on Mar 28).
The above guidance is based on a preliminary assessment made by the company. The Company is in the process of finalising the group’s unaudited results for 2QFY2024 which will be announced on or before Aug 14.
Shares in Asiaphos closed at 0.6 cent on Aug 5.
