CHINESE steel company Novo Group's losses for the fourth quarter ended April 2015 widened to US$11.32 million from US$6.52 million in the year-ago period as it slashed selling prices of its internationally traded and mainland tinplate manufacturing products to below cost. This was in a bid to clear out inventories and maintain market share overseas and in China.
Revenue for the same period plunged 69.9 per cent to US$22.27 million, from US$74.04 million, on the back of challenging market conditions.
For the full year ended April 2015, Novo's net losses deepened to US$20.58 million from US$13.27 million in the corresponding period a year ago. Over the same period, revenue slumped 8.8 per cent to US$248.98 million from US$273 million.
Despite the latest downturn, the group, which has been placed on Singapore Exchange's Watch-List since September 2014, is confident of business prospects in the medium term. Come FY2016, it anticipates an improved, though very mixed, operating environment.
"In order to respond to the market, we have adjusted our business strategy in accordance with the current state of operation. We aim to develop the two main drivers in our group, namely international trading business and tinplate manufacturing by expansion of our core business and vigilant cost control," the group said in a statement on Tuesday.
Loss per share for the quarter was 6.62 US cents while net asset value per share was 10.62 US cents. No dividends were declared for the quarter.
The counter last closed trading unchanged at 29 Singapore cents.