Shares in China Shoto (LON:CHNS) slumped by 34% to to 222.5p in early trading today after the Chinese battery producer said that revenue and profitability fell 15% in the first five months of the year. It said the Chinese government had increased control over low carbon, energy reduction and environmental protection and China's major telecom operators had reduced investment in infrastructure projects. As a result, lower levels of investment have reduced domestic demand for back up battery products.
The firm said it had hoped that a recovery of global markets and the development of overseas, export opportunities would mitigate the fall in domestic demand. It says it remains committed to developing international sales, and has achieved higher sales of certain product lines in difficult conditions. But it has experienced significant competition in overseas markets and global markets remain fragile.
In the six months to June 2009, China Shoto reported a 41% rise in revenues to £96.46m with profits up 43% to £5.56m. In the full year to December 2009 revenues had increased by 16.1% to £212.57m with profits up 117.1% to £25.05m.
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