Yongnam reported its 2013 full year result just yesterday. I have friends and colleagues coming to tell me that Yongnam's profit drop drastically and its shocking. Yes it is if you're just looking at the numbers. Yongnam's net profit actually dropped by a whooping 87.3% from 43.5 million to just 5.5 million. EPS dropped from 3.45 in FY2012 to 0.44 in FY2013. I'm vested in this company since August last year so i should be concern right? Or maybe not. Ok, enough of the bad numbers. Let's look at what happened.

Firstly, revenue actually increased by 19.9% for them but why did profit dropped so much? This mainly has to do with cost over run of 3 structural steel works projects. Which 3 projects was it they did not mention in their report. This caused its cost of sales to increased by 43.3% ......