Midas's Q1 bottom line hit by higher income-tax expense

MIDAS Holdings on Friday reported an 8.6 per cent year-on-year drop in net profit for the first quarter to 9.99 million yuan (S$2.01 million), dragged down by a higher income-tax expense.

Revenue for the quarter ended March 31, 2016, decreased 5.3 per cent to 303.52 million yuan in Q1 2016 as the aluminium alloy extruded products division reported lower revenue.

Earnings per share for the quarter under review slipped to 0.8 RMB fen from 0.9 RMB fen.

In April this year, the group also received shareholders' approval for the acquisition of Huicheng Capital, which will allow it to expand its customer base.

Midas chief executive Patrick Chew said: "Through Huicheng Capital, we are able to diversify our range of products and services and gain access to new industries and sectors such as aviation and automotive, while further strengthening our market position and competitiveness in China's rail transport sector.

"We plan to harness synergies between Midas and Huicheng Capital via vertical integration, with a goal of delivering greater value to our shareholders."