(Yicai Global) March 5 -- Chinese kitchen appliance maker Hangzhou Robam Appliances Co. has experienced continuous falls in its share price over the past week, wiping CNY9.87 billion (USD1.55billion) off the company’s market value amid disappointing financial results in the fourth quarter of last year.
Robam Appliances [SHE:002508], based in China’s eastern Zhejiang province, saw its stock price hit the limit down on Feb. 27 and Feb. 28., followed by 1.94 percent- and 0.18 percent-falls on the days following. The firm traded 1.98% down in trading today closing at CNY39.02 per share.
The firm had been regarded as a consistently good performer on the A-share market. Net profit growth had been above 35 percent until last quarter’s results when it CNY1.45 billion in 2017, a lower-than-expected 20.18 percent annual rise. The firm’s stock price had also risen tenfold since listing in late 2010.
Robam Appliances attributed the lower growth to external influences such as real estate regulations, rising costs of raw materials, and will now focus efforts on strengthening its brand and undergoing a technology-driven transformation.
Company chairman Ren Jianhua commented on the results, stating that “the company is still under normal operation and can maintain a growth rate of around 20 percent in the next three years.”
Several family members of Robam Appliances executives notably sold their shares in the fourth quarter, with Shen Guoying, chairman Ren’s wife, cashing out CNY88.56 million through the sale of 1.8 million shares. The reduction in the family member’s position in the company was due to the underperforming business performance, the firm said, adding that there was no significant undisclosed negative information about the company.