Ace Achieve Infocom's full year profit falls 75%

Singapore

ACE Achieve Infocom's full year net profit shrank about 75 per cent year-on-year to 4.47 million yuan (S$0.89 million) in line with lower revenue.

Revenue was about 33 per cent lower at 184.81 million yuan in FY18 as the Beijing-headquartered telecommunications company faced a "slow-down and intense market competition in the 4G business investment environment", which resulted in weaker revenue and slimmer margins. In particular, revenue from the ICT system integration division slumped by over 31 per cent year-on-year to 114.93 million yuan. Earnings per share for the financial year ended Apr 3, 2018 worked out to 0.59 yuan, down from 2.38 yuan a year ago.

Ace said: "The slowdown in 4G business investments continued during the year, due to the impact of unfavourable macroeconomic environment and market conditions. As a result, competition was fierce and the slowdown may continue and exert pressure on the group's margins and continue to adversely impact the group's business performance for the next 12 months." It highlighted that it would keep a tighter rein on costs.

The group also highlighted that it is diversifying into other new businesses to expand its income streams. The company signed an MOU on Nov 14 this year to acquire an interest in an online trading and payment solutions company that offers a one-stop solution for SMEs and lifestyle-centric consumers.

Ace called for a voluntary suspension of its shares on Nov 23, adding that it was "unable to reasonably assess its financial position".