Kunming Machine Tool plunges into red amid deteriorating environment

PUBLISHED : Thursday, 21 January, 1999, 12:00am
UPDATED : Thursday, 21 January, 1999, 12:00am

H share Kunming Machine Tool has become the latest state-owned company to warn investors it would plunge into the red for the last full year amid a deteriorating domestic operating environment.

The loss will be Kunming's first full-year loss since its 1993 listing.

The machine-tool company, based in the Yunnan city of Kunming, blamed slack demand, falling consumption and keen competition for the result.

Kunming had net profit of 1.2 million yuan (about HK$1.11 million) in 1997, down from 2.09 million yuan in 1996.

Several H shares have issued profit warnings: Yizheng Chemical Fibre, Tianjin Bohai Chemical Industry (Group), Nanjing Panda Electronics, Luoyang Glass, China Eastern Airlines and China Southern Airlines. CHRISTINE CHAN