Freeman FinTech faces $717m loss in tough marketBusiness | Lucas Lo 19 Nov 2019
Freeman FinTech (0279) warned that it expects to record a significant net loss of approximately HK$717 million for the six months ended September 30.
It is due to the provision for impairment loss of loans receivable of approximately HK$253 million as a result of extremely challenging market conditions that affect repayments from the borrowers; finance costs of approximately HK$386 million; and provision for impairment of factoring receivables of approximately HK$42 million as the increasing credit risks.
The company has unlisted wealth management products in the principal amount of approximately HK$944 million while the cost of goodwill was approximately HK$661 million.
Meanwhile, the company said it also held a wealth management product indirectly through its non-wholly owned subsidiary Wins Finance Holdings, which was due to mature on October 23, with a remaining outstanding principal amount of HK$647 million yet to be redeemed.
Wins Finance said the relevant financial institution which manages the product was not able to redeem the product yet, and Wins Finance has not provided the company with the product's expected recoverable amount and expected time for the redemption, it said.
It expects there will be uncertainties in respect of the recoverability of the product and if it is still not able to receive such financial information by the end of this month, it may not be able to publish its interim results by the end of November.