Hong Kong — Sinomax has reiterated its profit warning with more details on the size of the first half 2017 profit.
Initally, Sinomax warned on H1 2017 profits in June, now the firm puts the numbers as being likely to fall in a range between 60-80% of the first half of 2016 at around HK$ 25-33 m ($ 3.2-4.2 m ).
Sinomax said that profits are lower than expected in earlier projections because of the cost incurred in setting up a trial run, and recruiting staff for its factory in Tennessee, US. The ‘significant increase in the price of toluene diisocyanate for the six months ended 30 June 2017, compared with the same period last year’ was also a major contributor to the warning, the firm said.
The firm added that these results are based on un-audited figures and are ‘only a preliminary assessment’. The first half result is expected to be published on 29 August 2017.
Sinomax issued two profit warnings in 2016.
Exchange Rates: Xe.com 24 August 2017.