Creative Technology files notice of 3 straight years of losses
CREATIVE Technology has given notice that it has recorded pre-tax losses for three consecutive years.
It however meets the financial entry criteria to avoid being placed on the Singapore Exchange’s (SGX) watch list, as its six-month average daily market capitalisation as at Wednesday (Oct 11) was S$110.3 million.
According to SGX listing rules, mainboard-listed companies will be placed on the watch list under the financial entry criteria if they record pre-tax losses for the three most recently completed consecutive financial years, and fail to maintain an average daily market cap of at least S$40 million over the last six months.
Companies on the watch list must take active steps to satisfy the financial requirements within 36 months from the date they are placed on the list.
That means recording a consolidated pre-tax profit for the most recently completed financial year, based on the latest full-year consolidated audited accounts, and having an average daily market cap of S$40 million or more over the last six months. Otherwise, they will be delisted from the SGX, or have their trading suspended with a view to delisting.
Creative Technology narrowed its losses in the second half ended Jun 30 this year after implementing cost-cutting measures. It posted a US$6.1 million net loss, an improvement from the year-ago loss of US$12.2 million.
The company’s shares closed at S$1.61 on Wednesday, up S$0.01 or 0.6 per cent.
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