Fabchem China reverses into a loss following temporary stoppage order by authorities

Explosives manufacture Fabchem China reported a revenue loss of 62.3 per cent for the three months ending Dec 31.
Explosives manufacture Fabchem China reported a revenue loss of 62.3 per cent for the three months ending Dec 31.PHOTO: FABCHEM CHINA

SINGAPORE - Explosive maker Fabchem China plunged to a net loss of 16.8 million yuan, reversing from a profit of 2.8 million yuan in the third quarter.

Revenue for the three months ended Dec 31 fell by 62.3 per cent to 37.4 million yuan, owing mainly to the temporary stoppage of production ordered by the authorities as an overall safety precaution for all manufactures in the Shandong Province following an explosion at an unrelated boosters production plant in the province that occurred in October 2015.

Loss per share amounted to 35.83 fen compared to earnings of 5.96 fen previously while net asset value per share swelled to 841.27 fen, up from 172.74 fen as at March 31, 2015 following a share consolidation exercise.

Subsequently, on Nov 30, the group received a notification from the relevant authorities to allow the resumption of production of its commercial explosives products, except for boosters as this product will require additional safety inspection and clearance.

So far, its unit Yinguang Technology has yet to resume production of its booster products as it awaits regulatory nod.

"The management will continue to follow up with the relevant authorities in order to resume production and we will update shareholders of any other material impact to the group accordingly."