China ITS Co., Ltd. Provides Consolidated Earnings Guidance for the Year Ended December 31, 2018
January 30, 2019 at 07:18 pm IST
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China ITS (Holdings) Co., Ltd. provided consolidated earnings guidance for the year ended December 31, 2018. The board of directors of the company announced that based on the preliminary assessment of the group's unaudited consolidated management accounts, it is expected that, as compared to the net profit for the full year ended 31 December 2017, the group will incur a net loss for the year ended 31 December 2018. Based on the company's preliminary assessment, such net loss is mainly due to the following three factors: a decrease in revenue and profit of major business operations due to delayed delivery of some projects despite growth in amounts in contracts newly entered into in 2018; the adoption of IFRS 9 Financial Instruments by the company from 1 January 2018 resulting in the changes in the fair value of available-for-sale equity investment held by the company (note: the available-for-sale equity investment represents the equity investment that has no significant impact on the investing company) being reflected in the profit and loss of the period. As there is evidence indicating an impairment of the fair value of the relevant available-for-sale equity investment as at 31 December 2018, it is expected that an impairment to the relevant available-for-sale equity investment will be recognized for the year ended 31 December 2018; and an increase in allowances for bad debts due to the adoption by the company of the IFRS 9-Financial Instruments, as compared to the allowance recorded pursuant to the Company's former policy regarding allowance for bad debts, with effect from 1 January 2018.
China ITS (Holdings) Co., Ltd. is an investment holding company principally engaged in the provision of transportation infrastructure technology solutions and services. The Company operates its business through two segments. Specialised Solutions Business Segment is mainly engaged in the provision of solutions to discrete problems occurring in clientsâ existing or planned transportation infrastructure through the design, development and implementation of hardware-based and software-based systems. Value-added Operation and Services Segment is mainly engaged in the provision of operation outsourcing and value-added services, via intelligent transportation system platforms, servicing transportation operators and participants.