HONG KONG—Sinomax, a flexible foam maker with operations in mainland China, Vietnam and the U.S., is likely to lose about $4 million after tax in the first half of 2020.
The company, which made a first half profit of about $1.37 million in the first half of 2019, made the announcement to the Hong Kong Stock Exchange.
The coronavirus, Sinomax said, had a big part in the business's decline in the half.
"The deterioration of result is mainly due to the slowdown in the Group's business activities caused by the coronavirus outbreak and the increase in the amount of PRC withholding tax levied on the distributed profits of the company's PRC subsidiaries," the company said.
The company also noted that the loss should not impact its agreements with banks.