SOCAM Development Ltd Issues Profit Warning

SOCAM Development Ltd Issues Profit Warning

Profit warning for SOCAM Development Ltd

SOCAM Development Limited, an investment holding company, is engaged in the property development and construction, and cement manufacturing activities. The company develops residential, hotel, and retail projects; and knowledge communities, as well as provides property asset management services. It is also involved in the construction, interior fit-out, renovation, and maintenance of public housing, commercial, residential, and institutional buildings; sale of building materials; and provision of related consultancy services.

The company was formerly known as Shui On Construction and Materials Limited and changed its name to SOCAM Development Limited in September 2011. SOCAM Development Limited is headquartered in Hong Kong.  The Group recently announced a profit warning  in respect of the expected increase in the net loss of the Group for the six months ended 30 June 2014 (the “Net Loss”) as compared to the corresponding period in 2013.

Shareholders and potential investors should be informed that the company’s estimated amount of the exchange loss incurred by the Group’s property projects in the Chinese Mainland as a result of the depreciation of Renminbi during the six months ended 30
June 2014 was around HK$42 million based on a preliminary assessment of the Group’s unaudited management accounts for the period.

Shareholders and potential investors of the Company should exercise caution in placing reliance on the profit warning set out in the Profit Warning Announcements and this announcement in assessing the merits and demerits of any Possible Offers and/or when dealing in the Company’s securities.

The estimated amount of the exchange loss incurred by the Group’s property projects in the Chinese Mainland as a result of the depreciation of Renminbi during the six months ended 30
th June 2014 was around HK$42 million based on a preliminary assessment of the Group’s unaudited management accounts for the said period.

The Company is still in the process of finalising the consolidated results of the Group for the six months ended 30th June 2014, and at the date of this announcement, it cannot reasonably ascertain the total amount of the Net Loss.
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The financial information contained in the Profit Warning Announcements and this announcement is only a preliminary assessment by the Board based on the information currently available, which has not been reviewed nor audited by the Company’s auditor.

Shareholders and potential investors of the Company are advised to read carefully the announcement of the Company in relation to the results of the Group for the six months ended 
30 June 2014, which is expected to be released in August 2014.
 The profit warning as set out in the Profit Warning Announcements and this announcement constitutes a profit forecast under Rule 10 of the Takeovers Code, and given the time constraints when issuing the Profit Warning Announcements and this announcement, it does not meet the standard required by Rule 10 of the Takeovers Code.

The reports as required under Rule 10 of the Takeovers Code in respect of the profit warning as set out in the Profit Warning Announcements and this announcement will be contained in the next document to be sent by the Company to its shareholders in relation to the Possible Offer (if any) (other than any monthly announcement(s) setting out the progress of the Possible Offer to be made by the Company pursuant to Rule 3.7 of the Takeovers Code), if the Company has not yet made its interim results announcement for the six months ended 30 June 2014 at the time when such document is issued.

Shareholders and potential investors of the Company should exercise caution in placing reliance on the profit warning set out in the Profit Warning Announcements and this announcement in assessing the merits and demerits of the Possible Offer and/or when dealing in the Company’s securities.
 By Order of the Board SOCAM Development Limited Choi Yuk Keung, Lawrence 
Vice Chairman and Managing Director
 Hong Kong, 25 July 2014.

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