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Changtian Plastic sinks into the red in Q4 and FY2015, hit by impairment loss
CHANGTIAN Plastic & Chemical reported on Thursday a net loss for the fourth quarter ended Dec 31, 2015, pulling its full year into the red.
For Q4, its net loss was 17.5 million yuan (S$3.8 million), compared to a net profit of 13.7 million yuan a year ago. As a result, its FY2015 sank into the red, with a net loss of 7.1 million yuan, compared to a net profit of 23.6 million yuan a year ago.
The weaker performance was mainly due to a significant decrease in gross profit and an impairment loss of 15.1 million yuan on certain property, plant and equipment.
Changtian Plastics said while the group's cost of sales fell, it saw an increase in the depreciation of plant and machinery because of the reversal of impairment losses made in FY2014. As a result, the gross profit tumbled by 65.4 per cent, or 16.9 million yuan.
In Q4, revenue fell 64.3 per cent from a year ago to 10.5 million yuan. Full year revenue dropped 58 per cent to 50.8 million yuan.
Changtian said the domestic economy in China turned downwards and the market demand of its products was "reduced significantly" in 2015.
Though the average selling price of UV cured release films was slightly increased by 3 per cent, the average selling price of adhesive tapes and release papers were decreased over 10 per cent in 2015.
Its cash and bank balances fell by 19.2 per cent to to 776.4 million yuan by the end of 2015. The group generated net cash inflows of 0.1 million yuan from its operating activities in 2015.