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Valuetronics FY16 profit falls 19.3% as mass-market LED business goes dark
VALUETRONICS Holdings' net profit for the financial year ended March 2016 fell 19.3 per cent to HK$120.4 million (S$21.4 million), or 31.9 HK cents per share, as the electronics manufacturer continued to exit the mass-market LED bulbs business.
The company has declared a dividend of 20 HK cents per share, comprising a 13 HK cent final dividend and a seven HK cent special dividend.
Revenue fell 19.6 per cent to HK$2 billion as consumer electronics sales decreased 44 per cent to HK$824.6 million. Valuetronics said the decline was due to the company phasing out and exiting the low-margin mass-market LED bulb segment.
Industrial and commercial electronics revenue, however, rose 18 per cent to HK$1.1 billion due to increased demand from existing customers and the addition of a new customer.
The company expects to remain profitable in the coming year.