Nico Steel's net loss narrows 38% to $0.88m

Thanks to better sales of branded products.

Singapore-listed Nico Steel Holdings Ltd. has seen a slight improvement as it managed to narrow its losses from $1.37 million to $0.88 million for the half year ending in August.

According to the group, this was on the back of its progress in promoting Nico Branded Materials.

While its revenue fell 28% to US$7.2 million due to a general reduction in demand and intense market competition, contributions from NICO Branded Materials increased, accounting for 18.3% of the total revenue.

In terms of geography, the group's main revenue driver is China, contributing 76.7% of the group's total revenue.

Looking forward, the group said it will remain cautious about the second half of the year due to certain market challenges.

"The Group is cautious about the Company’s forthcoming second half prospects due to market challenges such as the continued weakness in the Europe, foreign exchange movements, the lower GDP growth in China, shrinking market demand and negative consumer sentiments from the Group’s key market," the group said.

In turn, Nico said it will continue to promote the Nico Branded Materials, review its operations, enhance governance and stay competitive.