Verdict awaited on Wah Lee delay
KAI PETER YU
Air-conditioner manufacturer Wah Lee Resources Holdings is facing stock-exchange sanctions after failing to win approval to delay the release of its annual results.
Wah Lee has breached the Companies Ordinance by not releasing annual results within six months of the end of its financial year.
The company yesterday said it would delay for a second time the release of its annual results, to January 27 at the latest.
Auditor Ernst & Young said it had not been given the necessary information required to complete an audit, and needed more time to examine additional data provided by the company.
Wah Lee reported an unaudited net loss of $58.6 million in the year to June 30 but said the figure was subject to adjustment on completion of the audit.
It posted a net profit of $16.84 million for the first six months of the financial year but recorded losses in the second half due to an undisclosed amount of bad debts.
A Wah Lee spokesman did not reveal the size of the accounts receivable, saying the firm had yet to decide on the portion for which provisions had to be made.
'[Bad debts of this size] are unprecedented in the company's history,' she said. 'And how big a percentage of the receivables need to be written off is debatable.' A stock exchange spokesman said a decision had yet to be made on whether to penalise the company for the breach of rules.