China Shoto misses by a mile - warning from China
Having issued 2 disappointing statements in 2010, the Chinese battery producer has opened 2011 with yet another disappointing announcement covering trading for the year ended 31 December 2010.
Further to previous announcements the Company has reaffirmed that it has experienced “challenging trading conditions”. A substantial decrease in the levels of investment made by the three major Chinese telecom operators, to which CHNS is a leading supplier, is expected to adversely affect the Company’s financial performance for the year ended 31 December 2010. The Government fuelled spending of 2009 has slowed and competition has increased, both of which has contributed to a decline in gross profit margins compared to the prior year ended 31 December 2009.(Gross margins Dec 2009: 23.09%; Dec 2008 23.3%) Although the trading performance did improve…