LONDON (Alliance News) - Hong Kong-based recyclable metals trader Zibao Metals Recycling Holdings PLC on Wednesday said its pretax profit was higher in the financial year to the end of March, despite its revenue being dragged down by tough market conditions.
The company said its pretax profit for the year to March 31 was HKD9.2 million, up from HKD8.0 million a year earlier, despite revenue falling to HKD403.8 million from HKD443.6 million amid tough trading conditions. It will not declare a final dividend for the year, though it did pay a 0.19 pence per share interim dividend.
"We are operating in a challenging environment. Due to the weak global economy and in particular the slowing of the Chinese economy, metal prices are weak and the outlook remains challenging," said Joe Zhou, Zibao's chairman.
Zibao said the trading environment has become more difficult than it had anticipated, amid a continued weakening in the Chinese economy and tight credit conditions. It said the recent devaluation of the yuan and declines in the Chinese stock market will make conditions more challenging, in part as this will increase the local currency cost of imported scrap metals.
Shares in Zibao were untraded Wednesday morning, having last traded at 4.45 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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