August 18 -- Gem-year Industrial (601002.SH) forecasts its net profit will drop 50 percent year-on-year in the first three quarters due to uncertainties in the high-speed railway parts market, reports yicai.com.

Gem-year said in its interim report that high-speed train accidents happen frequently and have affected related parts biddings and existing contracts settlements.

The company’s net profit fell 12.05 percent to 105 million yuan in the first half despite revenue growth of 21.16 percent to 1.54 billion yuan. General fastening pieces contributed revenue of 443.73 million yuan in the first half, up 24.77 percent. Revenue from high-speed railway parts slipped 7.29 percent to 485.25 million yuan. Gem-year says the yuan’s appreciation, as well as higher costs of labor, material, and energy, as well as fierce competition also caused its earnings to drop. The percentage changes are year-on-year.

Source:capitalvue