SINGAPORE (May 9): Huan Hsin Holdings reported a loss of $2.6 million for 1Q18, widening from its loss of $2 million a year ago on the back of lower revenue and higher costs.
Revenue for the quarter fell 21% to $3.9 million from $4.9 million in 1Q17, which the group says was in line with its ongoing plan to shut down some of its loss-making plants – specifically the winding down of its manufacturing business in stages, with the shutdown of its facility in Suzhou in Jan this year
Following a change in product mix, raw material and consumables used grew 26% to $2 million from $1.6 million a year ago due to higher cost of inventories, after the group discontinued its production of notebook and now solely produced wire, cable and related components.
As at end-March, the group’s current assets were S$21.5 million and current liabilities were S$75.5 million, which posts a going concern issue.
See: Huan Hsin's auditors cast doubts on company's ability to continue as going concerns
Despite this, Huan Hsin says its management is confident that with its strategies of corporate restructuring and disposing of non-performing assets, along with its concurrent efforts to look for acquisition and diversification opportunities, will allow the group to continue operating as a going concern in the foreseeable future.
Shares in the group closed 14.3% lower at 1.2 cents.
