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Trek 2000's Q2 net profit more than halved from a year ago
TREK 2000 announced a net profit of US$77,000 for its second quarter ended June 30 2018, diving from US$2.06 million a year ago.
Revenue sank 53.7 per cent to US$13.8 million in Q2, "mainly due to the uncertain market conditions and effect of the ongoing global trade war", said the firm in a filing to the Singapore Exchange.
Earnings per share was 0.02 US cent in Q2, down from 0.64 US cent a year ago.
No dividend was declared for the quarter.
In its outlook for the next 12 months, the group said that the industry will "remain challenging".
Aside from the ongoing trade war, Trek 2000 said that most of its clients are feeling the effects of the business slowdown.
"The group also faces price pressure from the uncertain market conditions mainly attributable to the unfavourable foreign exchange rate in China, our main market, as a result of the devaluation of CNY (Chinese yuan) against USD," it said.
However, the firm said that despite the challenges, the management is committed to penetrating the Internet of Things (IoT) market in consumer wearables, medical and cloud technologies, and exploring strategic partnerships to ensure the long-term sustainability of the group's operations.
Trek 2000 released its Q2 results after market close. The counter closed at S$0.112 on Tuesday, up 0.1 Singapore cent.