Chinese construction equipment manufacturer Zoomlion has issued a profit warning for the first half of this year. It says it expects to make a net loss of CNY 300 – 380 million (US$ 48 – 61 million) for the first six months of 2015, compared to a profit of CNY 900 million (US$ 145 million) for the same period last year.
In a statement o the Hong Kong stock market, the company said the reason for the earnings downgrade was, “The continuous slowdown in growth of fixed assets investment of the State (China), especially the slowdown in the growth of real estate investment.”
It added, “The demand in the construction machinery market continued to be weak, which represented a relatively substantial persistent impact on the overall sales revenue and net profit of the company.”
Zoomlion added that these were preliminary, unaudited figures, and that full details would be included in its half-year financial statement.