Administrative expenses increased by 20.4% to $2.31 million mainly due to increase in manpower cost attributable to higher headcount, entertainment expenses and equity-settled share-based expenses.
As a result, 2Q saw a 10.3% fall in gross profit to $2.43 million from a year ago.
The group also reported higher share of losses from associates and jointly-controlled entity of $0.12 million incurred by Chongqing eco-CTIG Rubber Technology Co., Geocycle Singapore and China-UK Low Carbon Enterprise Co.
Looking ahead, ecoWise says the SRR Group continues to face challenging market conditions due to economic and market uncertainties of both raw material and product and foreign currency fluctuations, in particular that of the Malaysian Ringgit.
The group is rationalising and reorganising its businesses to achieve a higher level of efficiency, economies of scale and effectiveness.
Shares in ecoWise closed flat at 2.9 cents.
