Success Dragon expects $10-15 mln impairment loss

HK-listed Success Dragon says it expects to record an impairment loss of US$10-15 million, which will impact the loss attributable to the company for the year ended March 31, 2018.

The impairment loss comes from Success Dragon’s investment in Primus Power Corporation, a Silicon Valley-based developer of power and storage systems.

Earlier this year in March, Success Dragon announced it had purchased more than 73 million Series E Preferred Shares issued by Primus Power, equivalent to around 20.8 percent of the company’s share capital for US$20 million.

In Success Dragon’s most recent filing, the company said “based on the preliminary draft of a valuation report on Primus prepared by an independent valuer, it is expected that the Group may record an impairment loss ranging from approximately US$10 million to approximately

US$15 million.

“As a result of the impairment loss, it is expected that the total comprehensive loss attributable to equity holders of the Company for the year ended 31 March 2018 will be impacted accordingly.”

“Since the impairment is non-cash in nature, there will be no immediate effect on the operating cash flow of the Group,” it added.