26th Sep 2014 08:14
LONDON (Alliance News) - Gowin New Energy Group Ltd shares were down in early trade on Friday after the company said its pretax profit and revenue fell in the first-half after its second quarter was hit by the implementation of better credit policies, leading it caution that its full-year results may fail to meet expectations.
Gowin's pretax profit in the six months to June 30 was CNY6.2 million, against CNY8.2 million a year earlier. Revenue for the group in the period fell to CNY51.4 million from CNY60.5 million in the period.
The group said revenue in the period was hit by a weak second quarter, which came under pressure following the implementation of better credit policies and its tougher qualification criteria for government street lighting projects in the Chinese market.
The group said it turned down a number of large-scale government street lighting and tunnel projects over the period, mostly due to the potentially long accounts receivables cycles involved in government contracts.
The China-based LED lighting products company said its decision to reduce domestic government business in China and the investment cycle for international contracts meant its sales and earnings for the full-year could come in below management expectations. It does expect this to be offset in 2015 and said its focus will be on increasing export sales and growing its indoor lighting sales domestically and internationally.
Gowin New Energy shares were trading 27.5% lower at 1.25 pence on Friday, making it the second worst performer on the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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