KUALA LUMPUR (Nov 14): China Stationary Ltd's (CSL) net profit for the third quarter ended Sept 30 plummeted 90% to RM4.89 million, from RM 50.74 million for the same period last year.

The China-based stationary maker warned that it anticipates more challenges due to reduced orders from customers, due to the fire incident in April.

"Another major challenge facing us is that the insurance company would not cover for loss of business income applies to the loss suffered by the company, during the time required to repair or replace the damaged property," said CSL in the announcement to Bursa Malaysia.

However, it noted that the remedial works has been ongoing, and the company has to-date invested RM 155.59 million to replace destroyed equipment.

CSL’s third quarter revenue shrunk substantially by 75% to RM60.92 million, from RM242.1 million. Earnings per share for the quarter slashed to 0.39 sen, from 4.08 sen.

For the nine-months ended Sept 30, revenue slid to RM 284.95 million from RM740.78 million for the period last year.  

CSL posted net loss of RM210.42 million, 16.93 per share, for the nine-month ended Sept 30, compared with a net profit of RM172.04 million or 13.84 sen per share in the previous corresponding period.

In explaining the loss, CSL said there was a decrease in sales of their patented and non-patented products.

The fire occurred on April 4 this year, with 10,000 sq m of the total floor area of 15,000 sq m at one of its production plant, severely affected by it.  

CSL share price closed at 9 sens today. Its market capitalisation is at RM 110.95 million.