Oriental Group's net losses spike 33% to $5.1m

Lower sales from steel trading operations are to blame.

Singapore-listed steel manufacturing and trading group Oriental group widened its losses as it ended its half year on a sad note, with revenues declining 14% to $2.2 million (RMB 10.6 million).

According to the group's announcement, its net losses ballooned to $5.1 million (RMB 24.8 million), 33% higher than $3.8 million (RMB 18.6 million) losses recorded last year.

Oriental Group claimed that its lower sales from the steel trading operations in SouthEast Asia has led to lower earnings during the half-year.

"The Group has ceased its steel trading operations in the South-East-Asia since July 2016. This is because the steel trading business was loss-making and with no working capital, the Company had to reduce fixed overhead costs in light of the Group’s current financial situation," the group stated.

with this, losses were increased mainly due to fair value loss on investment property, impairment on goodwill, loss on disposal of property, plant, and equipment, and foreign exchange loss.