Posted on 23 May 2017
Steel manufacturer Kinsteel Bhd reported a net loss of RM11.59 million in its third quarter ended March 31, 2017 (3QFY17), against a net profit of RM2.65 million a year ago.
The group said this was mainly due to decreasing demand for steel products.
In a filing to Bursa Malaysia today, Kinsteel said revenue slumped 28.87% to RM59.48 million, from RM83.63 million in 3QFY16.
For its cumulative nine-month period (9MFY17), the group’s net loss narrowed to RM31.32 million, from RM32.67 million in 9MFY16. Revenue dropped 13.04% to RM184.73 million, from RM212.43 million.
Going forward, the group said it is undertaking a debt restructuring exercise to address its liquidity issue.
“The group’s prospect is highly dependent on the successful implementation of the proposed restructuring scheme with its financial lenders and major creditors.
“The group’s requires operating profitably to generate sufficient cash in the future to fulfill their obligations, as and when they fall due and financial support from the lenders and shareholders,” it added.
Kinsteel’s share closed unchanged at 6.5 sen today, for a market capitalisation of RM62.5 million.
