[ET Net News Agency, 14 March 2018] KuangChi Science (00439) said it expects the profit
attributable to owners for the year ended 31 December 2017 may range from about HK$60
million to HK$100 million as compared to the profit of about HK$664 million in the
previous financial year, and it may record a net loss ranging from about HK$40 million to
HK$80 million for FY2017 as compared to a net profit of about HK$596 million for FY2016.
The decline in net profit is primarily attributable to provisions for impairment loss of
goodwill and other intangible asset related to the jetpack products business and
development costs incurred by Martin Jetpack Aircraft Company Limited, a non-wholly owned
subsidiary of KuangChi. No such provision was made in FY2016; a decrease in gain on change
in fair value of the subscription right (a derivative that measured at fair value through
profit or loss) of Kuang-Chi Technologies Company Limited for FY2017; a provision for
impairment loss of carrying amount of investment in an associate and an available-for-sale
investment in FY2017; and an increase in research and development expenditure in FY2017
for expansion of the business of the Group in FY2017.
Its annual results announcement is expected to be published in March. (HL)