LONDON (Thomson Financial) - Natsun Holdings Ltd. reported a maiden pretax profit of 41.425 million yuan ($6 million) for the period from May 14 2007 to Dec. 31 2007 on revenues of 290.955 million yuan.
The integrated worsted fabric and garment producer said the results met its expectations, although 2007 was a demanding year for the company due to increased wool prices.
Natsun said it has made a loss for the five months to May 31 2008 due to continuing cost pressures and challenges as in 2007 and does not expect business conditions to improve significantly in the foreseeable future.
The company said any further rise in costs not passed onto customers will continue to place its margins under increased pressure and it is likely its overall performance, particularly in its worsted fabric business, will be adversely affected.
But Natsun said it looks forward to a better second half of 2008. TFN.newsdesk@thomson.com kal/ms1 COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.