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One of our readers has kindly pointed out a mistake we made last week in our commentary on China Shoto. However, our overall prognosis on the business as a whole remains…

Having issued 2 disappointing statements in 2010, the Chinese battery producer has opened 2011 with yet another disappointing announcement covering trading for the year ended 31 December 2010.

Following on from its AGM statement on 22nd June the leading Chinese battery producer and the largest supplier of back-up batteries to China’s telecommunication operators updated the market today with an announcement with the somewhat gloomy title of ‘Factory Closure & Trading Update’.
We warned previously after the AGM statement (Commentary 22nd June 2010) that things weren’t looking too good and it appears they remain tough.
The factory closure itself relating to a business in which CHNS only has a 59% interest and which accounts for approximately 3% of the Group’s total production capacity doesn’t look that significant. However, it remains a ‘closure’ of a business that should be going through expansion, rather than the contraction that is now clearly the case.

The China based producer of industrial batteries and power supply systems, today announced its preliminary results for the year ended 31st December 2008 which came with a quite unexpected surprise.