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Huan Hsin to delist, submit cash exit offer by end-March
WHILE electronics contract manufacturer Huan Hsin Holdings' appeal to the Singapore Exchange (SGX) against its delisting was rejected, it got up till end of March 2019 to submit a reasonable cash exit offer proposal after its appeal for more time to do so.
SGX had told the company to delist in December 2018 due to its repeated failure to meet listing requirements for profitability and market value.
The company said it thinks it will be able to continue operating as a going concern in the foreseeable future, though it did acknowledge that its current assets of S$24 million and current liabilities of S$70.5 million as at Dec 31 posed a going concern issue.
But the group added: "Management is confident with the strategies of corporate restructuring to streamline operations and disposing non-performing assets to lower costs and reduce borrowings."
This came as the company narrowed its net loss to S$2.5 million for the fiscal year 2018 from a net loss of S$20.6 million previously.
This was helped by a boost in operating income to S$15.1 million from S$2.4 million in the previous fiscal year, from a gain on disposal of land and buildings and net foreign exchange gain.
Revenue fell 35.3 per cent to S$15.7 million from the year-ago period, as the company shut down loss-making plants and wound down its manufacturing business in stages, with the shutdown of its Suzhou facility.
Loss per share shrank to 0.62 Singapore cent from a loss per share of 5.15 Singapore cents in the preceding year.
Shares in the company are suspended.