Walcom confirmed that it has continued to experience challenging trading conditions in PRC during the second half of the financial year.
It now expects revenue for the full financial year to be materially less than 2016 and as a consequence the Company expects to be loss making for the full year.
"The challenging trading conditions in the PRC and associated pressure on accounts receivable in the region, including a material outstanding customer payment owed to the Company, have had a consequential impact on the Company's cash resources. The Company had cash and cash equivalents as at 31 October 2017 of HK$3.4 million. The Company has negotiated and agreed a new short-term Renminbi bank loan equivalent to HK$2.3 million to replace its existing loan of the same currency and amount, which has been used to finance the Group's general working capital. Receipt of the new loan and repayment of the existing loan is due to occur in mid-November 2017. The Company will closely monitor its working capital requirements and proposes to seek further bank financing if necessary."
At 1:34pm: (LON:WALG) Walcom Group Ltd share price was 0p at 1.25p