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Yorkshine Q1 loss widens to US$4m on suspension of business

YORKSHINE Holdings' net loss for the first quarter of fiscal 2019 has widened to US$4.0 million compared to a US$1.3 million loss for the year-ago period.

It recorded a loss per share (LPS) of 2.08 US cents for the three months ended July 31, 2018, versus an LPS of 0.67 US cent a year ago. No dividend was declared for the period.

Revenue for the quarter stood at US$1.3 million compared to no revenue for the period a year ago. 

The group resumed its main tinplate manufacturing business in May 2018, which generated revenue of about US$1.3 million at its Taizhou plant for June 2018. It said that given the nature of the manufacturing business, it would take some time for this segment to generate profits.

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The group's trading and distribution business, which involves the trading of iron ore, coal and steel products globally, remains temporarily suspended. The company added that it will consider resuming this business "should market and economic conditions prevail".

The group said stringent environmental rules in China have forced many unqualified factories to close since 2018, which significantly lowered the supply of tinplate products both locally and for export.

It said its Taizhou plant had been designed with the proper consideration on environmental protection, and had been granted the relevant licences. 

Demand for tinplate has gone up with the increased consumption of canned food. Tinplate can also replace non-degradable packages and act as a substitute for polyethylene terephthalate plastic material, said Yorkshine.

Based on these drivers of demand for tinplate and the manufacturing industry's macro conditions, the group said it is confident the tinplate manufacturing business will become a key revenue driver. The company added that it will continue to explore and identify opportunities from China's One Belt, One Road initiative.

Yorkshine, which is on the Singapore Exchange watch list and also listed on the Hong Kong Exchange, had its shares suspended since Aug 1, 2017 and they will remain suspended until further notice.