Hong Leong Asia Ltd Comments On FY 2012 Earnings Guidance

Hong Leong Asia Ltd announced that fiscal 2012, it expects a loss as compared to the profit reported for fiscal 2011. Based on the information currently available to the Group, the expected loss is mainly attributable to: the estimated loss on impairment of assets amounting to RMB290 million (equivalent to SGD57.4 million) arising from an impairment assessment in respect of Xinfei (the Group's Consumer Products Unit); and the additional tax liability of approximately RMB35 million (equivalent to SGS6.9 million) as a result of the Chinese tax authority disagreeing with Xinfei on the application of the high tech incentive status granted for fiscal 2008 and 2009. The Xinxiang National Tax Bureau has issued notice requesting for payment of this additional tax.