H share Yizheng Chemical Fibre and China Overseas Holdings, the major shareholder in red chip China Overseas Land and Investment (Coli), yesterday joined mainland-related companies issuing trading performance updates amid market concern about their financial health.
Yizheng, the fourth-largest polyester maker in the world, warned that it might incur a loss in the year to last December, caused by low gross-profit margins and imbalance between demand and supply of polyester products.
It expects to report its year-end results before or during April.
The company reported a first-half loss of 183.56 million yuan (about HK$170.83 million), hit by the down cycle in the polyester industry and the negative impact of the Asian financial crisis.
Management had earlier forecast a possible loss for the full year.
The announcement by Yizheng yesterday did not reveal its debt exposure but said business had seen an improvement in the second half.
Yizheng said it had taken the initiative to organise and strengthen co-ordination and co-operation among other domestic polyester manufacturers and had taken every measure to increase revenue and cut expenditure.