Investment holding firm Annica Holdings has refuted a Singapore Exchange (SGX) assertion that its narrower 2017 losses were largely due to the sale of loss-making operations.

It noted that the improvement was instead driven by reduced losses from continuing operations.

Annica was responding to the market regulator's queries on its independent auditor's report and 2017 annual report.

The regulator wanted clarification on the firm's view that an "improvement in general operating environment" provided a basis for expecting the firm to remain a going concern.

The SGX asserted that the improved 2017 results were "largely due to the disposal of the discontinued operations that were loss-making", according to Annica.

Annica stated: "The improvement in FY2017 refers not only to the reduction in total comprehensive loss for the FY2017 against FY2016, but the fact that the group has also managed to reduce its losses from continuing operations, net of tax to $1.3 million from losses of $4.1 million previously."

The firm added that its improved 2017 results were not largely due to the sale of loss-making operations, but "largely attributable to the improvement in the group's results from its continuing operations".

Annica - which focuses on power generation solutions and engineering services - posted revenue of $15.38 million last year, down from $19.39 million in 2016.

Net losses narrowed to $1.41 million from $7.94 million, with loss per share falling to 0.01 cent from 0.11 cent the year earlier.

The firm also shed light on its restructuring efforts, saying it would streamline businesses by improving margins and reducing operating costs while diversifying revenue streams.

It has identified the renewable sector as a future key growth driver, but expects meaningful contributions from the business segment to come only from FY2019, as "projects are only expected to come on stream after the second half of 2018".