Hi-P International to post loss for Q4 due to consolidation efforts
Tech firm Hi-P International expects to post a loss for its fourth quarter ended Dec 31 last year, instead of the profit it previously indicated.
The Singapore-listed company said on Sunday that it is relocating the production at its Tianjin plant to its Suzhou plant.
The move, part of the group's efforts to save costs and consolidate operations, will result in a provision of $13.5 million for the fourth quarter. This is largely due to an impairment loss on its property, plant and equipment, a refund of rental subsidies and plant restoration and relocation costs.
Hi-P will also log an inventory provision of $4.7 million on slow-moving projects, which will contribute to the fourth-quarter loss.