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.
See: Huan Hsin's auditors cast doubts on company's ability to continue as going concerns
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.
