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Huan Hsin widens loss, needs more time for exit-offer proposal
ELECTRONICS contract manufacturer Huan Hsin Holdings, told by the Singapore Exchange (SGX) to delist in December 2018, said in its FY2019 financial statement on Friday that it requires "more time to finalise the exit offer proposal".
The basis for the SGX's call was the mainboard-listed firm's repeated failure to meet listing requirements for profitability and market value, but it has yet to submit a reasonable cash exit.
Huan Hsin widened its loss to S$11.7 million for the year ended Dec 31, 2019, compared to a loss of S$2.4 million a year ago.
It recorded a 29 per cent decrease in revenue to S$11.2 million from S$15.7 million in FY2018 on the back of weaker demand for telecommunications and electronic products.
Loss per share shrank further to 2.94 Singapore cent from a loss per share 0.62 Singapore cents in the preceding year.
As at Dec 31, 2019, the group's current assets were S$7.5 million and current liabilities, S$50.2 million, and "posts a going-concern issue", noted the group in its financial statement.
"Management remains confident and is committed to the process of corporate restructuring to streamline operations and disposing non-performing assets to lower costs and reduce borrowings," it said.
Trading in the company's shares has been suspended.