Shanghai Prime Machinery Foresees Mid-term Profit Loss
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Shanghai Prime Machinery (SPM) foresees a consolidated net loss of RMB 30 to 40 million for the first six months of 2020. The company says that the COVID-19 escalating into a global pandemic has urged governments from around the world to enforce various measures which put a temporary stop to the manufacturing facilities of most SPM's automotive clients, especially those in China and Europe. SPM foresees a substantial loss in fastener business in the first half of 2020 due to the resulting slump of fastener production and sales. Furthermore, an additional non-recurring restructuring cost of around RMB11 million was generated from SPM for shutting down a factory in Berlin. SPM announced in November 2019 to close the factory, which is expected to shut down completely in the 3rd quarter of 2020.