SINGAPORE - Electronics contract manufacturer Hi-P reported a 12.4 per cent year-on-year increase in net loss to $13.8 million for the first quarter. The loss came despite a 56.4 per cent rise in revenue to $279.8 million.
Profitability for the three months ended March 31 was hit by startup costs for its new plant in Nantong, China and depreciation costs incurred for plant renovation, Hi-P said on May 4 when it announced its latest quarterly results.
As a result, loss per share widened 12.7 per cent to 1.69 cents, while net asset value grew 6.2 per cent to 74.56 cents per share.
Mainboard-listed Hi-P operates 14 manufacturing plants in China, Singapore, Thailand and Poland. The plants provide one-stop manufacturing solutions for mobile phones and tablets, among other appliances and devices.
Chief executive Yao Hsiao Tung said that the group remains on track for growth as previous restructuring and consolidation yield results in the second half this year.
"With the consolidation of our plastic operations in Jin Hai Road and Nanhui, we successfully reduced our overheads and enhanced productivity. Following the consolidation, we also renovated the plant at Jin Hai Road for upcoming major plastic-related project in the second half of 2015," he noted.
Jin Hai Road and Nanhui are both located in Shanghai.
Hi-P hence expects higher revenue in the second half and to be back in black for this financial year.