Electronics company Willas-Array BDR says it expects to report a loss of some HK$95.2 million ($16.4 million) for its 1HFY2024 ended Sept 30.
This is compared with the company’s consolidated net profit of approximately HK$12.8 million for the same period last year.
Willas-Array says its expected consolidated net loss is mainly attributable to a decline in sales revenue as a result of the weak demand, strong inflation and continuous interest rate increases in 1HFY2024.
Severe price competition in the overall electronic components market also caused a decrease in the company’s gross margins and exerted pressure on product margins, while the increase in stock provision made for the slow-moving inventories to account for the slowdown of market demand in 1HFY2024 further contributed to losses.
During the half-year period, net impairment losses were recognised under expected credit loss on trade receivables compared to 1HFY2023 where no impairment losses were made.
Excluding the stock provision of approximately HK$37.0 million, net impairment losses of some HK$8.4 million and a net exchange loss of approximately HK$15.4 million, the adjusted loss attributable to owners of the company same to an estimated HK$34.5 million in 1HFY2024
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Willas-Array expects to publish its half-year results on or before the end of November.
Shares in Willas-Array closed 2.5 cents or 7.81% down at 29.5 cents on Nov 23.
