HONG KONG -(Dow Jones)- Luoyang Glass Co. (1108.HK) said Friday it may report an operating loss for 2007 due to a delay in the recognition of a disposal gain.
In January, the company forecast a net profit for 2007 on higher glass prices and asset disposals. It posted a net loss of CNY317.5 million in 2006, according to Chinese accounting standards, it said in an earlier statement.
In its statement Friday, Luoyang Glass said its accountants recently told the board that the company won't be able to book gains from asset sales in 2007 because the company hasn't been fully paid for the assets and it only received a partial payment in January this year.
The company said it entered into an agreement to sell its idle production and auxiliary assets to a buyer for CNY29.38 million in December.