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Valuetronics Q2 net profit down 11.3% to HK$32.2m
MAINBOARD-listed Valuetronics Holdings on Friday posted an 11.3 per cent decline in net profit in the second quarter of FY2016 to HK$32.2 million (S$5.9 million), compared with the same period a year ago.
This, as revenue for the three months ended Sept 30, 2015, fell 16.1 per cent to HK$526.5 million.
The company said its industrial and commercial electronics (ICE) revenue increased by 27.7 per cent to HK$287.5 million, but this was partly offset by a lower consumer electronics (CE) revenue which fell by 40.6 per cent to HK$239 million.
The lower CE revenue was mainly due to the slowdown in demand in the LED lighting business.
Cost of sales fell 17.6 per cent in Q2 to HK$449.5 million.
In line with this, profit from operations was 11.3 per cent lower at HK$36.7 million.
Ricky Tse Chong Hing, chairman and managing director of Valuetronics, said: "We continued to see growth in ICE segment which mitigated the decline in CE revenue. We have shipped electronic products for the automotive industry and believe that this new product portfolio for the ICE segment offers opportunity for further growth."
Even as the group is well-positioned to take advantage of a widened product portfolio and opportunities in the pipeline, it said it remains mindful of the constraints placed on it by the overall business environment such as a stronger US dollar and a further slowdown in China's economy.