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Miyoshi sinks into red with Q1 net loss of S$314,000

MANUFACTURER Miyoshi on Tuesday posted a net loss of S$314,000 for its first quarter ended Nov 30, compared to a net profit of S$4.3 million a year ago.

Revenue dipped 3.5 per cent to S$14 million from S$14.5 million a year ago, mainly due to lower sales orders from the data storage and automotive segments in China and the Philippines. This was partially offset by higher revenue from the consumer electronics segment and higher rental income from the renewed tenancy agreement for its investment properties in the Philippines.

Loss per share was 0.01 cent, a reversal from earnings per share of 0.71 cent a year ago.

The bottom line fell because of the absence of a one-off gain on disposal of its Singapore industrial property at 5 Second Chin Bee Road, as well as a share of loss from associate of about S$367,000, which reflects the share of results of loss-making Chinese electric vehicle company Core Power, which Miyoshi has invested in.

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Miyoshi had previously disclosed that its independent auditors, BDO LLP, had included a qualified opinion on the group's FY19 financial statements mainly in connection with its investment in Core Power, a foreign associate.

"The management of the company is in active discussions with Core Power to resolve the financial-reporting matters," it said.

The company added that the global economic environment continues to present challenges as the group faces business headwinds.

"The trade tensions between the US and China are expected to continue to exert a negative impact on our business performance in our associated company in China. Our outlook for the next 12 months remains cautious."