- Livestock feed supplier Walcom Group posted a deeper annual loss, pinned on a slowing Chinese economy, higher manufacturing costs and an outbreak of swine flu.

Pre-tax losses for the year through December amounted to HK$8.6m, compared to losses of HK$4.9m on-year.

Chairman Frankie Wong said 2019 was set to be another difficult year for the company, while acknowledging that it was facing 'a very constrained working capital position'.

'Continuing from the last few years, the policy of economic structural transformation is still ongoing in China and is expected to cause slower growth in the Chinese economy for the foreseeable future,' Wong said.

'The aggregate effect of the economic structural transformation and the China-US trade war has adversely affected the growth of China's economy, although it has shown some improvement in the first quarter of 2019 owing to the effort of the Chinese administration, inter alia, in lowering the tax and financial burdens on businesses and civilians, as well as encouraging investment in new technologies and personal spending.'

'After the disposal of the subsidiary in Thailand in March 2019, the group continues to explore the markets in Thailand and Indo-China through the former Thai subsidiary as it has now become the exclusive distributor of the group's products in Thailand.'

'With its proven track record of success in marketing Walcom's products in the region, the company is optimistic that better results will be achieved in the coming years.'

'Although it is currently facing a very constrained working capital position, the company continues to consider all possible options to improve the cash flow situation.'

'Bearing all of these factors in mind, the board believes 2019 will be a difficult year for the group as the board anticipates a slower Chinese economy and a volatile global economic outlook for the year.'

At 1:24pm: [LON:WALG] Walcom Group Ltd share price was 0p at 0.38p

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