Qingdao, China – Mesnac reported an operating loss of 63 million yuan (€8.4 million) for the first six months of 2016 – the tire machinery maker's first ever half-year operating loss since going public in 2006.
Net profit fell at a slower rate of 85 percent to €2.4 million, on account of disposal of financial assets and other non-operating income. Revenue shrank by 36 percent to €122 million with decreases in both domestic and overseas markets.
Sales were down 24 percent in the domestic market and 65 percent overseas.
“Rubber machinery sales was less than expected due to a slowdown in tire makers’ investment,” said Mesnac’s interim report. This segment accounted for 46 percent of the company’s total revenue.
The only segment showing growth was its industrial robot and smart logistics business, bringing in €18.5 million sales during this period, up by 177 percent year-on-year.