Kinsteel active, slumps 11.11% on posting record loss
 

http://img-s-msn-com.akamaized.net/t...6&q=60&o=f&l=fKUALA LUMPUR (Aug 24): Kinsteel Bhd shares slumped 11.11% in active trade this morning after it posted a record net loss for the financial year ended June 30, 2017 (FY17) as it sank deeper in the red in the final quarter of the year, no thanks to a huge RM170.9 million impairment on its convertible securities and receivables in loss-making subsidiary Perwaja Holdings Bhd. At 9.40am, Kinsteel fell 0.5 sen to 4 sen with 5.38 million shares done. Its huge debt pile also incurred a large interest of RM91.2 million during the fourth quarter ended June 30, 2017 (4QFY17). Consequently, its net loss grew near eight times to RM287.43 million from RM37.69 million a year ago, while quarterly revenue contracted nearly half to RM44.72 million from RM86.57 million. The big impairment, Kinsteel said in a Bursa Malaysia filing, was booked after Perwaja?s proposed regularisation failed as the latter?s pact with China-based Zhiyuan International Investment & Holding Group (Hong Kong) Co Ltd in February this year was called off. Subsequently, Perwaja was delisted at end-May. As for the huge interest on its debts, Kinsteel said this was accrued after it failed to fulfil the conditions of a debt restructuring agreement with its creditors. Following the lapse of the deal, it said the central bank-backed Corporate Debt Restructuring Committee removed the group from its purview. Kinsteel?s debt stood at RM803.35 million as at end-June. Its dismal 4QFY17 dragged the group into a record annual net loss of RM318.75 million in FY17, some 4.5 times more than what the RM70.36 million it posted last year, while annual turnover shrank 23% to RM229.45 million from RM299 million.

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