Rich Goldman issues profit warning to investors

The operator said that while revenue for the period is forecast to increase by approximately 66% to HK$45.0m (£4.8m/€5.4m/US$5.7m), profit is expected to drop 98.0% from $4.0m to just $79,000.

Loss attributable to the owners of the business is likely to be at least $1.0m, while the total comprehensive loss attributable to the owners is expected to be approximately $18.0m.

Rich Goldman said that the $1.0m loss was mainly attributable to the absence of the gain on bargain purchase on an acquisition recorded by the group during the six-month period. 

In addition, the operator said the total comprehensive loss was primarily down to the net loss on foreign exchange differences related to Renminbi against Hong Kong dollars on translating the group’s operation of approximately $23.0m during the period. 

The net loss on foreign exchange differences is a non-cash accounting treatment that is published in accordance with Hong Kong Financial Reporting Standards.

Rich Goldman said it is still in the course of finalising the results for the six-month period and that the final set of figures may differ.

The operator expects to publish the results for the interim period in full by the end of February.