SCUD warns of loss

There has been a significant decrease in sales revenue.

The board of directors of SCUD Group Limited announced that based on the management’s preliminary assessment of the unaudited management accounts currently available, the Group is expected to report a consolidated loss for the year ending 31 December 2012 as compared to a consolidated profit the results for the year ended 31 December 2011.

According to the announcement, the demand for the Group’s products, especially its own brand replaceable batteries for mobile phones, has decreased at a faster rate than the Group anticipated.

The Group plans to restructure the sales network of the SCUD brand and the Chaolitong brand in mainland China and gradually scale down traditional sales channels.

“The Group will proactively develop other sale channels and seek a diversification of sales channels so that traditional and modern sales distribution channels will be complement each other. Management believes that online shops have unique marketing strengths and market potential and will take up sale volumes from some traditional sales outlets,” said the announcement.

It said the Group will proactively promote online marketing to deliver products to customers in the most efficient manner. The Group will also continue to adjust its product portfolio to accommodate structural changes in the mobile phone industry and develop more battery products and accessories for smartphones.