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Cheung Woh, Willas-Array expect losses for current fiscal periods
TWO Mainboard-listed companies issued profit guidances on Thursday evening.
Hard disk drive manufacturer Cheung Woh Technologies said that for its third-quarter financial results for the period ended Nov 30, 2019, it expects to report a loss after taxation, mainly due to low turnover and the fact that there was no significant other operating income recorded during the quarter.
Electronic components distributor Willas-Array Electronics (Holdings) also said that based on a preliminary assessment of its unaudited consolidated management accounts for the nine months ended Dec 31, it expects to record a consolidated net loss for the period ended Dec 31, 2019 compared to a year ago.
The expected net loss for the group is mainly due to its lower sales revenue as a result of the continuing US-China trade tensions that have dampened consumer sentiment, stock provision made for the slow-moving inventories due to slowdown of market demand, and an exchange loss arising from the depreciation of the Chinese yuan.
Details of the group's results are expected to be released in mid-February 2020.