Willas-Array Electronics Limited has guided a net profit of approximately HK$14.7 million ($2.6 million) net profit for 2QFY21 ended Sept 30.
See also: Willas-Array ready to tap growing demand for electronic solutions
This is compared to a net loss of some HK$31.2 million in the same period last year.
The group has also estimated a net profit of HK$21.8 million for the 1HFY21 ended Sept 30 compared to a net loss of HK$55.8 million for the six months ended Sept 30, 2019.
The profit, according to the company, is mainly attributable to several reasons, including an increase in gross profit margin in 1HFY21 due to a “significant decrease” in clearance of buffer stocks.
The company also saw a reversal of stock provision of some HK$8.9 million compared to the stock provision of around HK$18.8 million for slow-moving inventories the year before.
The company registered a decrease in staff costs due to the streamlining of manpower as one of its cost-saving measures implemented this year. There was also no significant exchange difference during the period, compared to the exchange loss of HK$16.6 million from the depreciation of the renminbi in 1HFY20, it says.
Shares in Willas-Array closed flat at 38 Singapore cents on Oct 15.
