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27 Feb 2009 08:34
27th February, 2009
ASIAN GROWTH PROPERTIES LIMITED
Profit Warning - Revaluation of Property Portfolio
The board of directors (the "Board") of Asian Growth Properties Limited (the "Company" and together with its subsidiaries, the "Group") (AIM Stock Code: AGP), the Hong Kong based China property development and investment company, wishes to provide the following performance update. Based on the management accounts of the Group for the year ended 31st December, 2008 (the "Year 2008") prepared in accordance with the International Financial Reporting Standards and the latest information available, the Board advises that as compared with profit after tax for the year ended 31st December, 2007 (the "Year 2007"), the Group's profit for the Year 2008 will decrease significantly and the Group may incur a loss for the Year 2008.
The Board attributes such decrease in profitability for the Year 2008 to a diminution in the aggregate value of the Group's properties as a result of the unfavourable conditions of the property market caused by the global economic downturn since mid September 2008 as compared with a significant increase in the aggregate value of the Group's investment properties for the Year 2007.
Despite the above adverse change in the aggregate value of the Group's properties, which is a non-cash item, there has been no negative impact on the cash flow and the operations of the Group and the Group maintained profit from operations for the Year 2008 before such valuation change.
The Group does not have any exposure to over-the-counter contingent forward agreements or derivative financial instruments for equity investment or currency hedging, which cause any adverse effect on the Group. The Board considers that the financial and liquidity positions of the Group remain sound and the Group can weather the current deteriorating economic conditions and can meet the challenges ahead.
As the Group's consolidated results for the Year 2008 have not yet been finalized as at the date hereof, the information contained in this announcement is only a preliminary assessment made by the management based on the figures and information currently available, which are subject to audit or review by the Company's independent external auditor and necessary adjustments. It is expected that the Company will announce its audited consolidated financial results for the Year 2008 in late March 2009.
Shareholders and potential investors are advised to exercise caution when dealing in the shares in the Company.
For more information, please contact:
Lu Wing Chi Tel: +852 2828 6363
Executive Director
Asian Growth Properties Limited
Richard Gray Tel: +44 207 459 3600
Andrew Potts
Panmure Gordon (UK) Limited
(Nominated Advisor)
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