Hwa Hong dividend announcement

Hwa Hong released its poor results this evening.

Revenue decreased  by $23.1 million  or  45%  year  on  year  (“yoy”),  from  $51.1 million  in  financial  year ended 31  December  2010 (“FY2010”),  to  $28.1 million  in financial year ended 31 December 2011 (“FY2011”).

Decrease in  profit  before  taxation (“PBT”)  of Rental and Investment  by  $6.5 million  yoy  was mainly  due  to the following:

- Lower gain from sale of investment securities.
- Decrease in interest income
- Lower gain on sale of investment properties
- Absence of write-back for impairment loss on impairment properties
- Higher allowance  for  impairment  loss  on  current  and  non-current  investment securities

Increase in loss before taxation in Trading segment by $2.3 million  yoy  was mainly due to  lower  gain  from  sale of  investment  securities  and  higher  allowance  for  impairment loss on investment securities.

Cash used in operations for full year 2011 versus cash generated from operations for full year 2010 = $10 million!

Net current assets positions halved :- year 2011 $76.9 million versus year 2010 $163.1 million.

As l have previously anticipated, dividend of $0.01 per share is proposed.