KUALA LUMPUR: V.S. Industry Bhd, the country’s largest electronics manufacturing services provider, improved its net profit by 21% to RM48.07 mil for the first quarter ended Oct 31, 2019, on much smaller losses from its operations in China.
The company said the China segment’s losses narrowed to RM3.1 mil from RM20.36 mil a year earlier following the restructuring and streamlining of operations by adopting an asset-light and lower-cost model.
There was also the absence of loss on disposal of a subsidiary amounting to RM5.4 mil recognised in the preceding year’s corresponding quarter and this increased the earnings, it said in a filing with Bursa Malaysia on Dec 12.
Revenue, however, was lower at RM1.03 bil compared with RM1.07 bil previously due to lower sales orders completed under the China segment.
Moving forward, V.S. Industry said its board expected the group’s financial performance for the remaining quarters of its financial year to be satisfactory despite the subdued overall consumer and business sentiments.
“With the tough environment expected to prevail, the group is focusing its efforts to contain cost, optimise productivity and enhance value creation for its customers,” it said. – Bernama
