Kunming Machine Tool Co says it has plunged into the red before taking into account interest income from bank deposits in the first six months of this year.

The H-share company said net profit was 739,000 yuan (about HK$687,639), down 82 per cent from a year earlier.

Before the inclusion of net financial income of 7.38 million yuan, after adjusting for interest income and foreign exchange loss, the company made a loss of 6.51 million yuan, against a profit of 80,000 yuan a year ago.