China Zenix Auto Suffers 25% Drop In 4Q Revenue

China Zenix Auto International Ltd

disclosed that it suffered 25% drop in revenue for the fourth quarter to RMB 587.5 million or $90.7 million. In comparison, the company generated revenue of RMB 783.6 million in the 2014 fourth quarter. China Zenix Auto said that its net profit and total comprehensive income was RMB8.6 million or $1.3 million with earnings per American Depositary Share (ADS) of RMB0.17 or US$0.03 versus a net loss and total comprehensive loss of RMB13.7 million with loss per ADS of RMB0.27 in the fourth quarter of 2014 The company's Deputy CEO and Chief Sales and Marketing Officer, Junqiu Gao, said, "We are pleased to report that our sales decline has slowed and margin started to recover. The successful introduction of our aluminum wheels helped boost our confidence in differentiating ourselves in this competitive marketplace." He added that "While there remains uncertainty in the Chinese domestic truck market for 2016, we look forward to increasing penetration into high end bus market with our aluminum products. We remain hopeful that, after the G-20 meeting, many countries will stabilize their currencies which can potentially help us to regain growth in international market." Similarly, its CFO, Martin Cheung, CFO of Zenix Auto, said that "We are delighted to close out 2015 in a high note from balance sheet perspective. In such a challenging market, we successfully managed our priorities in cash-flow generation and cost control. We believe that our solid balance sheet and our new products will help solidify our leadership in the Chinese wheel market." Shares of the company were flat at $1.05 on Thursday closing.