SINGAPORE - Fabchem China Limited said it expects to post a net loss for the fourth quarter and full year ending March 31.
The Chinese manufacturer of explosive devices said that the loss for the fourth quarter mainly stems from revenue loss due to the temporary suspension of their booster production activities, which came as a precautionary measure by authorities following an unrelated explosion incident at a booster production plant in Shandong Province.
Fabchem also expects its financial performance to be impacted by China's slowdown and general weakness in global commodity prices that continue to impact mining activities in China, which their local sales are based on. Mining activities have also been affected by the Chinese authorities' tightening of regulations on industrial activities and pollution.
This profit warning is based on a preliminary review of Fabchem's unaudited financial results and further details will be disclosed by May 30.