LED International hit by Chinese slowdown as annual losses widen

30th Dec 2014 10:30

LED International, the AIM-listed energy-saving products group, saw losses increase in the financial year ended 30 June amid "difficult trading conditions".The Hong Kong-based company said operations were burdened by rising inflation, an appreciating renminbi and slowing economic growth in the first half, though the impact of these factors was reversed in the latter part of the year.Revenues totalled £1.73m, down 1.3% on the year before, while the pre-tax losses widened 10% to £1.76m from £1.59m.The company said that the fall in turnover was due to slowing growth in the domestic market in the People's Republic of China (PRC), and lower sales of LED element products to major home appliance manufacturers.LED International's shares have been suspended from trading since 22 December pending a reverse takeover of Chinese rice distributor Shenzhen Ruihetai.Despite the slowing growth in China, the firm welcomed measures by the government designed to promote and regulate energy conservation.The company said: "This signifies energy savings and conservation, promising opportunities in the energy management market and the group aims to become one of the leading energy and green management service providers in the PRC."It also believes that the government will "implement fiscal and monetary policies to stimulate steady economic growth".