Friday 29 Mar 2024
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KUALA LUMPUR (Feb 25): Ann Joo Resources Bhd saw its net loss widen to RM47.67 million in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM7.58 million a year ago, due to margin erosion triggered by plummeting steel prices, and the “dogged import of steel products from China”, despite higher tonnage sold.

The group’s revenue for 4QFY15 was down 15.8% to RM413.54 million from RM491.09 million, mainly due to depressed selling prices as a result of persistent influx of artificially cheap Chinese steel products, particularly the import of steel bars, its bourse filing today showed.

For full year FY15, the group posted a net loss of RM135.48 million, compared with a net profit of RM23.39 million in FY14, while revenue dropped 23.17% to RM1.76 billion, from RM2.29 billion previously.

The group said its performance for the FY16 will still remain heavily dependent on the price trend of steel products, and the effectiveness of enforcement activities to curb the influx of imports.

“Given the challenging economic condition and market outlook, the group remains focused on lowering production cost [by] leveraging on the current material price and blast furnace technology,” it said.

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