30th Dec 2019 17:31
(Alliance News) - Zibao Metals Recycling Holdings PLC said Monday its interim loss narrowed due to cost control initiatives, even as its revenue declined on reduced trading activity.
For the six months to the end of September, the metals recycling company reported a loss of HKD534,000, about GBP52,181, narrowed from HKD2.4 million the same period the year before.
This was mainly due to a drop in administrative expenses to HKD1.7 million from HKD2.8 million.
However, revenue declined by 15% to HKD118.3 million from HKD138.8 million the prior year, as new regulations in China continued to restrict the importation of scrap materials.
As a result, Zibao said it has not been able to secure new sources of supply that could restore trading to more normal levels.
Looking ahead, trading levels are not expected to return to sustainable levels in the near future, and the group said it is now exploring other strategies.
In mid-December, Zibao confirmed that it was in talks to sell its trading unit Masterpiece Enterprises Ltd.
Shares in Zibao Metals - which is based on Hong Kong - closed 17% lower at 0.5 pence on Monday in London.
By Dayo Laniyan; [email protected]
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