Metal trader WellNet Holdings suffered a 62.6 per cent year-on-year decline in net profit in the first half to June 30 due to unusual volatility in steel prices.
Attributable profit for the six months to June 30 amounted to HK$10.04 million as turnover grew 13.5 per cent to HK$1.19 billion.
A company official said a tightening of import quotas resulted in a 'shrinkage in the whole pie [metal imports market]'.
WellNet, which targets the mainland market, claims to have a 10 per cent to 15 per cent share of imports and exports.
The official said tightened quotas resulted in higher price fluctuations.
'In view of the steel price fluctuations that were unusual in recent years, the company has focused on higher-liquidity, lower-operating risk and lower-profit margin products to control risks,' she said.
