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GDS Global widens full-year net loss to S$1.76m
CATALIST-LISTED GDS Global widened its full-year net loss to S$1.76 million from S$630,000 a year ago, on declining revenue amid continuing weak conditions in the construction industry, said the firm in a filing on Wednesday.
Revenue for the 12 months ended Sept 30, 2019 slid 19.6 per cent to S$14.26 million from S$17.74 million a year ago. The fall in revenue was due to a sharp decline in sales of door and shutter systems.
Overall sales of door and shutter systems fell 41.4 per cent to S$5.51 million, mainly attributable to the decrease in sales of distributed and manufactured products. This decline was partially cushioned by a 10.8 per cent rise in revenue from the provision of service and maintenance work to S$2.36 million, and a 3.1 per cent rise in revenue from trading and designing of production components to S$6.39 million.
Year-on-year, gross profit fell 21.9 per cent to S$4.24 million. Consequently, gross profit margin narrowed from 30.6 per cent to 29.8 per cent, squeezed by lower sales of manufactured products, which typically have better margins as compared to distributed products, said the firm.
Loss per share stood at 1.91 Singapore cents, compared with 0.89 cent a year ago. The company has proposed a first and final dividend of 0.3 Singapore cent for its full fiscal year.
GDS Global said it will continue to focus on innovation and production efficiency to stay competitive, and is currently exploring technology solutions to enhance its distribution channels. It remains cautious with the credit risk of potential customers and is selective in the bidding of new projects.
Barring "any unforeseen circumstances and subject to market conditions and other commercial considerations", the firm expects to launch new products in the next 12 months.
GDS Global shares closed flat at S$0.35 on Wednesday before the results were announced.