SINGAPORE (Feb 19): Valuetronics Holdings says control measures implemented at its China factories to curb the spread of the COVID-19 coronavirus outbreak could result in a drop in its revenue for 2HFY2020 ending Mar 31, 2020.
This is due to reduced production days and a temporary drop in production capacity.
In a statement on Wednesday, the electronics manufacturing services provider says its factories in Huizhou in China’s Guangdong Province have resumed operations and production this week.
This comes after the completion of an inspection carried out by the relevant government authority and the receipt of the official notice for the resumption of operations.
However, the group says some of its workers have been unable to return to work as planned, due to the various administrative measures which have been implemented to curb the spread of the outbreak.
For instance, transportation facilities in various provinces in China remain suspended or have limited service.
“It is expected that the PRC Factories will experience delay in resuming their operations to a level before the Chinese New Year holidays and will have difficulties meeting originally planned product delivery schedules,” the group says.
See also: Coronavirus outbreak prompts RHB to turn cautious on Valuetronics
Shares in Valuetronics close half a cent lower, or down 0.7%, at 71.5 cents on Wednesday, before the announcement.
Year-to-date, the counter has fallen 12.8%.
