KTL Global, AEI expect to report FY2020 losses

MAINBOARD-LISTED firms KTL Global and AEI Corp are expecting losses for FY2020 ended December, they announced in separate bourse filings on Monday after trading hours.

KTL Global said that its loss is mainly due to the decline in service income of the group amid the outbreak of Covid-19, as well as the impairment of doubtful debts recognised in Q4 FY2020, pertaining to collection of trade receivables.

On Feb 2, KTL Global announced that certain customers of its Branding, Operation & Procurement (BOP) service had yet to pay a total sum of S$2.74 million.

"In view of such non-payment, the BOP services provided to these customers who have defaulted on the above-mentioned payments have been suspended since January 2021, and will continue to be suspended until the group's receipt of payments of the above-mentioned outstanding sum," KTL Global said.

"The company has also sought assistance from lawyers based in the People's Republic of China in preparing the relevant letters of demand and/or legal advice on other debts recovery procedures against such defaulting customers," it added.

KTL Global is expected to announce its results by Feb 24.

Separately, aluminium products manufacturer AEI said on Monday that its expected loss is mainly attributable to the operating loss of the extrusion business, the impairment of assets or investments, compliance costs and new venture startup costs.

Shares of KTL Global closed at S$0.089 on Monday, up 5.95 per cent, while shares of AEI closed flat at S$1.10.