Beijingwest Industries International Limited Provides Unaudited Consolidated Earnings Guidance for the year Ended 31 December 2019
March 20, 2020 at 01:48 pm
BeijingWest Industries International Limited announced that based on the preliminary
assessment of the Board with reference to the unaudited consolidated management accounts of
the Group for the year ended 31 December 2019 and other information currently available to
the Board, the profit attributable to the owners of the Company for the year ended 31 December
2019 is expected to show a significant decrease by at least 90% as compared to that for the year
ended 31 December 2018. Such adverse change is primarily due to the following factors:
The business of BWI (Shanghai) Co. Ltd. ("BWI Shanghai") recorded an operating loss
in the first half of 2018 due to changes in the market conditions in China. In order to
mitigate the adverse effect caused by BWI Shanghai on the Group's performance, the
Group disposed of its 51% interest in BWI Shanghai to a connected person of the
Company (the "Disposal"), which was completed on 28 August 2018. In 2018, the
Group realized a significant disposal gain of approximately HKD 86,278,000 upon the
completion of the Disposal. However, no such one-off disposal gain was recorded by
the Group in 2019. The Group consolidated the operating loss of BWI Shanghai in 2018. After the
completion of the Disposal, the Group no longer recorded the operating results of BWI
Shanghai in 2019. Consequently, there was an improvement in the profit of the Group
in 2019 resulted from the mitigation of the adverse effect caused by BWI Shanghai.
However, the impact of Brexit on the automotive components business started emerging
in 2019 and at the same time the European economy was weak. These affected the
operations of the plants of the Group in the United Kingdom and Poland, which led to a
decline in profit from the wholly-owned subsidiaries of the Group in the United Kingdom
and Poland. Overall, the decline in profit from the subsidiaries in the United Kingdom and Poland in 2019 outweighed the improvement in profit of the Group in 2019 resulted
from the mitigation of the adverse effect caused by BWI Shanghai.