PETALING JAYA: Furniweb Holdings Ltd, a 54.19%-owned subsidiary of PRG Holdings Bhd, has warned of a RM4.2 million net loss for the six months ended June 30, 2019.
According to Furniweb’s profit warning announcement released to The Stock Exchange of Hong Kong Ltd (HKEX), the group expects to record a substantial decline in its financial performance and anticipates to report a net loss for the period of about RM4.2 million compared to the net profit of about RM600,000 for the corresponding period in 2018.
The group said its profitability for the period was mainly affected by the increase in marketing and distribution cost as its retail business commenced operation in the second quarter of 2019.
The group also saw an increase in administrative expenses due to professional fees incurred for the acquisition of Meinaide Holdings Group Ltd, which was completed on June 28, 2019, as well as pre-operating and administrative expenses incurred during the period for the retail business of the group.
The profit warning is based on the preliminary review of the unaudited consolidated management accounts of the group for the six months ended June 30, 2019.
Furniweb is listed on the Growth Enterprise Market or GEM of HKEX.