Wireless communications company Coolpad Group has issued a Hong Kong Stock Exchange warning that it anticipates a loss of about HK$2.05 billion (US$264 million) in its latest results for the six months ended June 30.
This compares to a profit of about $2.843 billion and $2.325 billion for the same period last year and the year ended December 31, respectively.
The group says the estimated loss is primarily the result of sales dropping about 40 per per cent last year and by 10 per cent for the last quarter of last year. This was mainly because of the economic downturn and “fierce” competition in the domestic smartphone market.
Coolpad says a business restructuring and the development of an open retail channel are yet to impact sales performance.
There was also an expected loss of about $1.89 billion from a share adjustment framework agreement between the company, Tech Time Development and Coolpad eCommerce, plus an expected loss of about $170 million from Coolpad eCommerce.