SINGAPORE (Apr 23): Cheung Woh Technologies announced that 4Q18 losses widened to $8.92 million from $1.76 million in 4Q17 because of higher general and administrative expenses.
This brings FY18 losses to $16.8 million, compared to earnings of $3.60 million in FY17.
Revenue for the quarter was 1.7% lower at $20.7 million from $21.1 million a year ago due to lower sales in precision metal stamping (PMS) components segment which was partially offset by increase in sales in hard disk drive (HDD) components segment.
Cost of sales increased by 4.6% $21.9 million compared to $20.96 million last year, mainly due to higher labour and overhead costs.
This brings gross loss for 4Q18 ended Mar to $1.19 million, compared to a gross profit of $0.13 million in 4Q17.
Other operating income rose 172% at $2.01 million, mainly attributed to foreign exchange gain and increase in sales of scrap metal.
General and administrative expenses increased to $7.26 million from $1.71 million in the previous year, mainly due to allowance for impairment on property plant and equipment; write-off tools and equipment and renovation which were damaged by Typhoon Halo; staff cost due to internal restructuring; and repair of machinery and equipment damaged by typhoon.
In its outlook, Cheung Woh says its HDD components segment is expected to face uncertainty and challenge, while its PMS component segment is expected to do well.
Nonetheless, the group is actively looking to develop new products and new markets for its future growth.
Shares in Cheung Woh closed 1 cent lower at 16 cents on Monday.
