Gross profit margin of Jurong Cement and Concrete Division in Singapore declined significantly.

< P > < FONT face = Verdana > Jurong Cement issued a profit warning, expecting a loss for the group's full-year results to the end of last month.

< P > < FONT face = Verdana > It said that gross margins in its concrete division had fallen significantly as prices of land sand and granite soared. Because of the need to fulfill the obligations of existing contracts, the relevant departments are unable to pass on all the increases in cost prices to customers. Non-operating expenses also rose significantly as a result of the increase in gratuities and severance payments to staff. In addition, the performance of one of the affiliated companies in China has been hit by a fraud case involving a former chief financial officer, which is still under investigation. Further details will be announced when the Group presents its full year results.

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