SINGAPORE (Nov 2): Sin Ghee Huat, the distributor for stainless steel products, announced that losses for 1Q18 widened by 20% to $470,000 compared to $391,000 in 1Q17.
Revenue declined by 6% to $7.29 million compared to $7.78 million last year as market demand continued to remain weak.
Despite lower revenue, gross profit for the first quarter ended September was 15% higher at $1.90 million from $1.66 million last year, partly due to lower material costs, lower allowance for inventory impairment as well as an improvement in the selling price of the products.
But finance cost quadrupled to $37,000 compared to $8,000 the previous year, mainly due to unamortised costs for certain bond securities being expensed off in the quarter upon redemption by the bond issuers before maturity.
Other operating income was 94% lower at $8,000 compared to $126,000 on a foreign exchange gain recorded in the preceding year.
On the other hand, the group reported other operating expenses for this quarter of $205,000, which was not posted last year, due to foreign exchange loss incurred during the quarter.
In its outlook, Sin Ghee Huat says oil prices seem to be showing signs of recovery recently but business activity in the oil and gas sector has not improved and thus demand for the group’s products is expected to remain weak for now amid a soft market.
The group will continue to manage its costs and conserve cash.
Shares in Sin Ghee Huat closed 2 cents lower at 19 cents.
