Darco Water Technologies Limited provided earnings guidance for the financial year ended 31 December 2021. For the year, the company expects net loss for FY2021 is mainly attributable to the same reasons set out in the Company's financial results announcement for the half year ended 30 June 2021, namely: the poorer performances of the Group's subsidiaries in China and Malaysia in FY2021 as compared to the previous financial year ended 31 December 2020 as follows: the Group's operations in Malaysia had been negatively impacted to a greater extent than
was previously expected by developments relating to the COVID-19. Due to the long drawn-out COVID-19 pandemic and fluctuating infection numbers in Malaysia, the Group's subsidiaries in Malaysia had faced business pressures as the majority of tenders that were originally projected to be awarded for FY2021 had been postponed to a later date; and the Group's subsidiaries in China had faced mounting challenges in the face of stiff competition. This intense market competition had resulted in a challenging business environment in China whereby the Group's subsidiary in China had to bid for projects at lower margins; the slower implementation of the Group's pneumatic conveyance systems in Singapore due to the COVID-19 measures imposed by the authorities, with construction costs being higher than usual due to the stringent labour regulations.