Kunming Machine profit drops 82pc

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.

Turnover plunged 31 per cent to 18.51 million yuan.

Earnings per share were 0.3 fen and no interim dividend will be paid.

The company said Beijing's tight monetary policy would continue to restrain its buying power.