Trek 2000 swings to S$9m loss for 2015

SINGAPORE - Trek 2000 International said on Tuesday (July 19) that it swung to a net loss of US$6.72 million (S$9.07 million) for the year ended Dec 31, 2015, from a net profit of US$1.15 million the 2014 fiscal year.

Revenue rose 34.5 per cent year on year to US$149.14 million, driven by higher revenue from its main interactive consumer solutions business, but the cost of goods sold jumped nearly 46.6 per cent to US$145.16 million. As a result, gross profit sank 66.5 per cent to US$3.98 million.

Trek 2000 also cautioned investors in its statement on Tuesday that because an independent review and inqury are ongoing of certain interested party transactions, there are uncertainties as to their full implications and impact on its unaudited financial results. Some of these transactions were the subject matter of Commercial Affairs Department (CAD) investigations.

Mainboard-listed Trek 2000 suspended trading in its stock on April 27.

Looking ahead, Trek said "it continues to drive developments within three main areas of consumer wearable, medical and cloud technologies".

It added that its key focus will be the medical technology industry, where an ageing population brings about a need for new and innovative solutions within healthcare to tackle the upcoming challenges.