SINGAPORE - Hong Kong design and manufacturing firm Valuetronics Holdings reported on Friday (Nov 13) an 11.3 per cent fall in net profit to HK$32.2 million (S$5.9 million) for its second quarter ended Sept 30, from HK$36.3 million a year ago.
Group revenue decreased by 16.1 per cent to HK$526.5 million as the company saw a 40.6 per cent fall in revenue from consumer electronics (CE) to HK$239 million. This was partly offset by a 27.7 per cent rise in revenue from its industrial and commercial electronics (ICE) segment to to HK$287.5 million
Gross profit margin also improved to 14.6 per cent from 1 3.1 per cent in the year-ago quarter due to the company changing its product sales mix.
Valuetronics said it has a new revenue stream from the production of electronic products for the automotive industry. "This is a new business opportunity that offers potential for further growth," it said.
The company also said its future CE revenue will comprise principally consumer lifestyle products, as over 90 per cent of its LED lighting products have come to the end of their life cycle in the quarter.
Said Mr Ricky Tse Chong Hing, chairman and managing director of Valuetronics: "We continued to see growth in the ICE segment which mitigated the decline in CE revenue. We have shipped electronic products for the automotive industry and believe that this new product portfolio for the ICE segment offers opportunity for further growth."