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Plastoform still in the red for Q1, could see entry into SGX watch list
PLASTOFORM Holdings on Thursday posted a first-quarter loss of HK$11.2 million (S$1.9 million), and could be on the Singapore Exchange's watch list for breaching profitability requirements after recording its third straight year of losses.
For Q1 2017, the Hong Kong-based audio speaker maker made a loss of HK$15.9 million.
For the three months ended March 31, loss per share (LPS) stood at 28 HK cents. LPS in the year-ago period was 39.7 HK cents.
But, Plastform's revenue in Q1 2018 increased by 54.8 per cent to HK$18.7 million from a year ago.
This was mainly attributed to a "comparatively strong" demand from customers in Q1 2018.
Plastoform said that the global bluetooth speaker market is "still flooded with endless numbers of new brands" launching their speakers.
The three tech giants, Amazon, Google, and Apple, also launched their smart audio speakers which add "greater competitive pressure" to the consumer audio marketplace.
"Our major customers in the audio field suffered a significant drop in sales which induced the decline in the group's business," it said.
It added that it will develop products with virtual reality features and expand the business to the commercial and industrial sectors with different technology and product applications.
"Aggressive sales and relationship strategies will be employed to fight for more revenues."
On April 3, Plastoform warned that it could enter the SGX's watch list under the financial requirements after recording three consecutive years of losses.
It is on the watch list for breaching the minimum trading price criteria, and is given until June 4, 2020 to exit.
Plastoform's market capitalisation stands at about S$4.2 million.
The counter last traded at S$0.106 on April 13.