China Electric Motor Inc. said Friday that its first-quarter net earnings dropped slightly from the same period last year as the company logged expenses from an initial public offering.
The Chinese maker of parts for household appliances, autos and consumer devices said it made $2.96 million, or 16 cents per share for the quarter, 1.6 percent less than the $3 million, or 27 cents per share, it earned during the same period last year.
Per-share results fell sharply because the company had about 62 percent more shares outstanding in the latest quarter.
Revenue for the period was $21.5 million, up 13.8 percent from the prior year.
But expenses also rose, especially in the general and administrative area, due to the company's initial public offering that was launched in January, CEO Yue Wang said in a statement.
The company raised $22.5 million in January after selling 5 million shares for $4.50 each, $2.50 less than it had originally sought.
"Our first-quarter results were in line with guidance and demonstrate progress on our strategy to grow revenue and income by focusing on higher margin sales and initiatives to grow our customer base," Wang said in a statement.
Shares of the China-based company were down $1.47, or 16.5 percent, to $7.43 in midday trading.
