Cost of sales decreased 24.2% to $25.8 million in 3Q18 in tandem with the decrease in business activities.
The group registered a 60.7% decrease in gross profit to $2.2 million as a result of decrease in revenue and higher operating costs incurred for projects during the current period.
Accordingly, the gross profit margin decrease to 7.9% in 3Q18 from 14.2% in 3Q17.
Other income trebled to $1.1 million in 3Q18, mainly due to the increase in sales of minor and other assets.
Administrative expenses increased 25.8% to $5.9 million in 3Q18 mainly due to increase in administrative staff costs.
The increase in other losses to $2.4 million was mainly due to loss on disposal of available-for-sale financial assets of $1.6 million and an increase in exchange loss of $0.7 million.
The income tax expense of $0.3 million was in relation to the profitable entities within the group.
Ryobi Kiso expects the construction sector to remain challenging. External factors such as keen competition, rising costs and the tight labour market will continue to add pressure on the group’s performance. Accordingly, it is unlikely that there will be an improvement in the group’s financial performance in the next reporting period.
Shares in Ryobi Kiso closed 0.6 cent lower at 17 cents on Monday.
