(Yicai Global) Aug. 13 -- State-owned bad-debt manager China Huarong Asset Management warned of a decrease in profits in the first six months of this year due to an increased amount of debt and underwhelming market performance. The announcement prompted a share price decline of over 4 percent today.
The decline of the company’s revenue is mainly attributed to the considerable increase of external financing which causes a surge in interest expenditure as compared with the previous year, the stock exchange filing shows. The Beijing-based firm also blamed the bear market.
Huarong's shares slid 4.1 percent to HKD1.87 at the close.
The profit-warning adds pebbles to the rocky road for the company whose Chairman Lai Xiaomin is under investigation on charges related to corruption. The firm is expected to publish its mid-term performance report before the end of this month.
Editor: Emmi Laine