Losses widen for two firms

China Oceanwide (0715) said its net loss will widen to HK$4.6 to HK$5.6 billion in 2021 from HK$960 million a year ago.

The significant increase in loss was mainly due to the impairment provisions for various overseas projects, coupled with the failure of work resumption of the company's real estate development project in the United States.

The huge loss is also attributable to the increase in penalty interest, loan extension fees and provisions for litigation-related expenses associated with US real estate projects.

China Innovation (1217) also issued a profit warning that it will record a loss in 2021 of approximately HK$30 million to HK$40 million, representing an increase of loss of approximately between HK$20 million to HK$30 million compared with 2020.

The estimated loss was primarily due to the uncertainty brought by the global pandemic situation and the loss of the investment products, said the company.

Staff reporter