CFP net losses soften by 55.4% to $3.4m

Thanks to an improvement in overall sub-standard production rate.

Singapore-listed China Flexible Packaging (CFP) is slightly getting back on its feet as it reported a narrowed net loss of $3.4 million (RMB 16.7m) for the quarter ending in July, a 55.4% improvement from last year's $7.7 million (RMB 37.4m).

According to the group, the loss was mainly attributable to the unfavourable product mix where only low-cost products accounted for total sales yielding an unattractive margin. More so, it the group was pressured with the economic slowdown in China.

However, its net loss, as well as its gross loss, has improved from last year.

"It was contributable by the downscaled production in the less efficient production line no.3 and an improvement in overall sub-standard production rate," the group said.

Meanwhile, the group revenue fell 65.1% to RMB 26.4 million, a 65% decline from RMB 75.5 million during the same period last year.

The narrowing of group revenue is mainly due to the significant drop in the sales volume of CFP's major product low shrinkage.

"It was attributed to downscaled production in the less effective production line no.3 in 3Q 2016 in light of production performance issues; and lower overall market demand from the weakening domestic consumer market and keener market competition," the group explained.