Dufu Tech profit down in sec­ond quar­ter de­spite higher rev­enue

The Star Malaysia - StarBiz - - News -

PETALING JAYA: Dufu Tech­nol­ogy Corp Bhd saw its sec­ond quar­ter earn­ings fall by 5.35% to Rm9.90mil de­spite rev­enue ris­ing by 37.68% to Rm73.41mil.

The com­pany said profit had fallen mainly be­cause of un­re­alised for­eign ex­change losses.

“The higher rev­enue was mainly due to the in­crease in vol­ume load­ing by cus­tomers re­lated to hard-disk drive com­po­nents,” it said in a fil­ing with Bursa Malaysia.

The com­pany said an un­re­alised for­eign ex­change loss of Rm3.5mil had been recorded in the cur­rent quar­ter com­pared to an un­re­alised for­eign ex­change gain of Rm1.2mil in the pre­vi­ous year’s cor­re­spond­ing quar­ter.

It had also in­curred an ad­di­tional em­ployee share op­tion ex­pense of RM800,000 in the cur­rent quar­ter.

The com­pany said it also had to close its man­u­fac­tur­ing plants in Malaysia due to the move­ment con­trol or­der (MCO) that was im­ple­mented by the gov­ern­ment.

“Sub­se­quently, we re­ceived ap­proval from the In­ter­na­tional Trade and In­dus­try Min­istry to op­er­ate at 50% of our man­power ca­pac­ity.

“Dur­ing the MCO pe­riod of about one month, al­beit with min­i­mal work­force, we in­tro­duced a hard­ship al­lowance and pro­vi­sion of meals for work­ers who came back to work,” it added.

The com­pany said with lower out­put from its Malaysian op­er­a­tions and higher cost of com­pli­ance, labour and over­head costs per unit of vol­ume pro­duced had in­creased and this had af­fected its prof­itabil­ity in the sec­ond quar­ter.

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