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Trek 2000 International reports net loss after tax of US$700,000 for Q3
EMBATTLED Trek 2000 International has reported a net loss after tax attributable to owners of the company of US$700,000 in the third quarter, compared with a net profit of US$4,000 for the corresponding quarter last year.
The mainboard-listed company attributed the loss to a decrease in the market price of products in the face of increased competition during the Covid-19 pandemic.
Trek 2000 said its interactive consumer solutions division continued to be a key revenue generator, accounting for 79.4 per cent of overall revenue in Q3. Revenue grew to US$7.7 million in Q3, up from US$7.6 million for the year-ago quarter.
However, it incurred a gross loss of 9.4 per cent in Q3, compared to a gross profit margin the same period in 2019, due to a write down of inventory cost during the pandemic.
Interest income fell due to falling interest rates, although the group's other income rose due to foreign exchange gain, it said.
The company said the company had been adversely affected by the pandemic, as a result of lockdowns and infection-control measures in other countries, which have disrupted the global supply chain and the semiconductor industry. It is expecting the industry to remain challenging in the next 12 months.
The company's founder Henn Tan was fined in August over interested-party transactions and still faces several other charges, although Trek 2000 said previously that the legal proceedings have "no impact on the company's operations and businesses".
Trek 2000's shares closed flat at 7 Singapore cents on Wednesday.