SINGAPORE (May 30): Commercial explosives manufacturer Fabchem China posted earnings of RMB 1.0 million ($0.2 million) for the full year ended March, reversing out of a loss of RMB 33.8 million a year ago.
This was largely attributable to a RMB 30.1 million net gain on disposal of a subsidiary, Hebei Yinguang.
Group revenue fell 25.1% to RMB 148.5 million in FY17, from RMB 198.4 million a year ago.
The decline was mainly due to temporary stoppage of its boosters production. Production capacity of its boosters was also further constrained by the boosters automation upgrading programme.
As a result, gross profit margin fell by 10.7 percentage points to 15.0% for FY17.
Cash and cash equivalents stood at RMB 83.3 million as at March 31, 2017.
Looking ahead, Fabchem says reduced mining activities in China and will continue to affect its local sales in China as most of its commercial explosives products are used in mining related activities.
“Challenging business conditions and enhanced safety measures have continued to put our operating revenue and margins under pressure,” says Fabchem managing director Sun Bowen.
Shares of Fabchem China last closed at 16.1 cents on Monday.