Longcheer Holdings' Q3 net profit tumbles 38%

SINGAPORE - China-based Longcheer Holdings' third quarter net profit has taken a 38 per cent tumble to 10.9 million yuan (S$2.3 million).

This was on the back of a 5 per cent drop in revenue to 998.4 million yuan in the three months to March 31.

This was mainly due to a decrease of 30 per cent in total shipment to 3.72 million units from 5.27 million units in the same period last year.

Earnings per share slipped to 3.08 fen from 4.96 fen previously while net asset value per share firmed to 189.92 fen compared to 167.46 fen as at June 30.

Looking ahead, Longcheer noted that the 3G smartphone market is highly competitive and the competition is increasingly more intensive, with gross profit margin continuously under pressure.

"Moreover, the change of promotion policies of the major telecommunication carriers in China may also affect the demand of smartphones in China which resulted pressure on our shipment volume."

It has put its efforts in developing 4G products.

It said it will continue to rationalise its clientele and exercise strict cost control to improve its operating efficiency.

"Barring from any unforeseeable circumstances, the company will benefit from the efforts in products and customers rationalisation and resulting profitability."