Xinhua News Media Holdings Limited (HKG:0309) (Xinhua News) announced that the group is expected to record a loss for the financial year ended 31 March 2012 which is significantly higher than the audited loss recorded for the year ended 31 March 2011.

The increase in loss is mainly attributable to impairment of property, plant and equipment related to the waste treatment segment and annual amortization of the intangible asset in relation to the free right owned under the TV screen broadcast business (non-cash expenses).

As Shuyang ITAD Environmental Technology Limited, an indirect subsidiary of Xinhua News, had entered into the termination of the investment agreement with the Shuyang Municipal Government on 9 January 2012, Xinhua News had made appropriate impairment of property, plant and equipment related to the waste treatment segment. In addition, the free right awarded to Xinhua News for ten years is an intangible asset which should be amortized annually, and the income from TV screen broadcast business recorded for the year ended 31 March 2012 is not as expected, so the annual results of Xinhua News will be affected.

The audited annual results of Xinhua News for the year ended 31 March 2012 is expected to be released on 28 June 2012.

Source:chinesestock.org