24th Mar 2014 11:44
LONDON (Alliance News) - LED International Holdings Ltd Monday reported a wider loss for the first half of its financial year.
In a statement, the provider of LED lighting in China reported a loss of HKD6.1 million for the six months to December 31, 2013, compared with the HKD5.7 million loss it posted a year earlier. The wider loss was mainly due to a big fall in "other income" in the profit and loss account. The company didn't explain the drop.
Its revenues rose to HKD10.8 million, from HKD10.1 million, boosting gross profit to HKD21,000, from HKD18,000.
The company is struggling with its financing. Last week, it said it still hasn't received the funds from its recent subscription offer, and while it is still in talks with the subscribers about when the funds might be paid, it is also considering its legal rights and is now also in advanced talks with another party about getting much-needed funding.
The energy saving products company had announced a proposed capital raising at the end of December after its energy management contract business plan was delayed. At that time, it borrowed CNY6 million from Rubyfield Holdings Ltd and Speedy Dragon Holdings Ltd under a working capital loan, and said it would raise CNY25 million through a subscription with those companies. The placing and the loan proceeds combined total CNY31 million.
In February, the company had said that it was still trying to raise CNY31 million from the two investors in an attempt to secure its immediate future and fund its new lease financing unit.
Its new leasing unit, Green Pearl Leasing, will provide lease financing to customers. It has been awarded a leasing finance license, but LED International was required to contribute 20% of the subsidiary's CNY100 million registered capital within three months of the license being approved. It has to contribute the remaining money within two years of the approval.
LED International Holdings shares were down 11.1% at 16 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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