Strong Petrochemical (HKG:0852) said it expects to record a $10.7 million loss in a recent trading transaction involving bitumen products, according to a Tuesday filing with the Hong Kong bourse.
Trading in the company's shares has been suspended since Dec. 31, 2024, and will remain halted until further notice.
The company said it had imported 1.65 million barrels of bitumen products with the intention of selling them domestically as raw materials for road asphalt production. However, import customs authorities conducted "excessively long inspections" on the imports, resulting in an increase in the group's selling costs.
Similarly, the Middle East conflict prompted a rise in transportation and other related costs, causing a drop in demand in the mainland for its imported product.
As a result, the firm said it expects to record a loss on the transaction when taking into account the combined effects of the difference between buying and selling prices of the imported bitumen products.
The loss will not have a material adverse effect on the company's ongoing operations, the firm said.