Cleantech Solutions FY16 Net Loss Narrows, Revenues Down - Quick Facts

(RTTNews) - Cleantech Solutions International (CLNT), a Chinese manufacturer of dyeing and finishing machinery to the textile industry, reported Monday that its fiscal 2016 net loss was $11.7 million or $9.79 per share, compared to net loss of $12.8 million or $12.97 per share in 2015.

Loss from continuing operations was $1.4 million, or $1.17 per share, compared to income from continuing operations of $3.0 million, or $3.04 per share a year ago.

Revenue for 2016 decreased 40.1% to $17.4 million from $29.0 million for 2015.

The company said its only source of revenue is dyeing and finishing business, since its forged rolled rings and related products and petroleum and chemical equipment businesses are reflected as discontinued operations.

Revenues declined due to an anticipated slowdown in shipments of low-emission airflow dyeing machines as many companies in the dyeing industry had already upgraded to new models and did not require additional equipment. Also, orders for new low-emission airflow dyeing machines slowed down in 2016 as potential customers for equipment did not have the financial resources or credit to purchase equipment.

In addition, the business was also affected by government actions requiring textile manufacturers in Zhejiang province to temporarily cease operations in order to improve air quality ahead of the G20 Summit in Hangzhou during September 2016.