Yunnan Energy H1 loss narrows to HK$7.07m

MAINBOARD-LISTED Yunnan Energy recorded a loss of HK$7.07 million (S$1.25 million) for the six months ended June 30, more than halving from a loss of HK$15.1 million in the year-ago period, it said in a statement on Wednesday after the market close.

This made for a loss per share of 2.57 Hong Kong cents, down from 5.47 Hong Kong cents in the first half of FY2019.

No dividend was declared. The firm did not release separate figures for its financial second quarter.

Revenue for the first half was HK$38.4 million, down 76.5 per cent from HK$161.6 million in the year-ago period, as orders fell amid the Covid-19 pandemic.

The company distributes analytical and laboratory instruments and life sciences equipment in China. In the first half of 2020, this business was hit by the Covid-19 pandemic, with production suspended and sales activities cancelled or significantly reduced.

"Despite the decline in revenue, the group focused on cost control, imposed stringent regulations to eliminate unnecessary administrative and selling expenses and reduced finance costs through various measures, which include obtaining support from its major shareholders. This resulted in a significant reduction in operating loss from the corresponding period in previous year," it said.

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It added that the group will continue to develop its trading and supply chain business, and expand the supply-chain business "into areas that are stable in their performance and less affected by macroeconomic changes", to continue generating stable operating revenue.

Yunnan Energy shares closed flat at 15.9 Singapore cents on Wednesday before the release of the results.