SINGAPORE (Nov 9): Huan Hsin Holdings, the integrated contract manufacturer of telecommunications and electronic products, saw its 3Q17 loss narrow 38% to $2.5 million from $4 million a year ago on lower expenses.
Revenue for the quarter fell 43% to $7.6 million from $13.2 million previously, in line with the group’s ongoing plans to shut down some of its loss-making plants.
Other operating income fell 82% to $0.9 million from $5 million in the previous year, mainly due to the absence of a net foreign exchange gain of $3.8 million registered in 3Q16.
Employee benefits expenses decreased by 37% on-year to $2.7 million from $4.3 million previously, due to lower headcount cost as the group downsized and closed its loss -aking factories.
At the same time, depreciation and amortisation expenses fell 44% to $0.7 million in Q3 from $1.2 million a year ago due to the lower carrying value of the depreciable assets.
As at end-Sept, the group’s total current assets were $26.1 million compared to $37.5 million as at end-Dec, 2016, due to declines across cash and bank balances, trade receivables and inventories.
Huan Hsin says it will continue to adopt multi-pronged strategies of corporate restructuring to streamline operations and dispose non-performing assets to lower costs; reduce borrowings; and concurrently look for acquisition and diversification opportunities to generate additional earning streams.
Shares in Huan Hsin closed 36.8% higher at 2.6 cents on Thursday.
