Following a change in product mix, raw material and consumables used grew 26% to $2 million from $1.6 million a year ago due to higher cost of inventories, after the group discontinued its production of notebook and now solely produced wire, cable and related components.
As at end-March, the group’s current assets were S$21.5 million and current liabilities were S$75.5 million, which posts a going concern issue.
Despite this, Huan Hsin says its management is confident that with its strategies of corporate restructuring and disposing of non-performing assets, along with its concurrent efforts to look for acquisition and diversification opportunities, will allow the group to continue operating as a going concern in the foreseeable future.
Shares in the group closed 14.3% lower at 1.2 cents.
