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China Shoto net profits down by around 30%
StockMarketWire.com


Chinese battery producer China Shoto estimates full year net profits will be down by around 30% on 2009.

The firm said it had experienced some challenging trading conditions in 2010 and the substantial decrease in the levels of investment by the three major Chinese telecom operators was expected to adversely affect the company's financial performance.

It said the unusually high spending in 2009 was fuelled partially by an economic stimulus package from the Chinese government.

It added: "As a result of reduced levels of spending by the three major Chinese telecom operators, competition has increased and contributed to gross profit margins declining when compared to the year ended 31 December 2009.

"As expected, the company's trading performance did improve during the second half of the year; however the board estimates that net profit for the year ended 31 December 2010 will decrease by approximately 30% when compared on a year-on-year basis to the previous financial year."