The net loss for 4QFY2021 was mainly due to inventory provisions for personal protective equipment (PPE) amounting to approximately US$3 million arising from the lower average selling prices for PPE in the current global market.
The medical consumables supplier lowered its average selling price for PPE by about 20%-30% towards the end of FY2021 to remain competitive in the global PPE market, which had led the company to reassess the realisability of some of its inventory items and in turn led to the provisions for 4QFY2021.
"Although the company expects to suffer losses in 4QFY2021 and 2HFY2021, the Board considers that the group’s overall financial position, cash flow and operations are in a good and stable condition," says the company.
Moving forward, the group intends to set up a "Task Force on Growth Initiatives", which will include the CEO and senior executives of the group, as well as external consultants, if deemed necessary.
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To keep pace with sustainability trends, the company is exploring investing in renewable energy "to meet the requests from our clients for more green manufacturing in the future".
The company presently intends to focus on solar power and energy storage services, including installation of solar panels in existing factories.
For the proposed venture into the renewable energy market, the company will provide further details at the appropriate juncture and, if necessary, seek the necessary approvals from its shareholders, if and when these proposals materialise.
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The company is expected to release its FY2021 results on or before March 1.
Photo: Medtecs International
