Winsway Coking Coal Holdings Ltd. (1733), which processes and moves coal to China from Mongolia, fell the most in more than three months in Hong Kong after saying it posted a first-half loss because of lower prices and demand.
The stock fell as much as 10.9 percent to HK$1.23, the most since March 28, in intraday trading and was at HK$1.29 as of 10:56 a.m. local time. The benchmark Hang Seng index gained 1.5 percent.
The company didn’t specify the loss for the six months ended June 30. Finance costs increased following the sale of $500 million, five-year bonds in April last year, Winsway said today, citing unaudited financial results.
The price of coking coal, the raw material used to make steel, fell as Chinese mills and coke plants cut back demand, the company said today in a statement to the Hong Kong stock exchange. Winsway has dropped 34 percent since April 23, when China’s biggest aluminum producer Aluminum Corp. (2600) of China Ltd. agreed to purchase a majority stake.
Finance costs also rose after buying Calgary-based Grand Cache Coal Corp., Winsway said today. Winsway acquired Grand Cache with Japanese trading house Marubeni Corp. (8002) for about C$1 billion ($986.9 million) in March.
To contact the reporter on this story: Michelle Yun in Hong Kong at email@example.com
To contact the editor responsible for this story: Rebecca Keenan at firstname.lastname@example.org