SINGAPORE (July 12): Hi-P International, the electronics manufacturer in the telecommunications, lifestyle, computing and automotive industries, has put the “ghosts of Yota” behind it – possibly for good – in Maybank Kim Eng’s view.
The chapter on assembling Russia’s Yotaphone2, which led to FY15 losses from $74.4 million in inventory write-offs, closed in Jan 2017 with an out-of-court settlement of US$17 million ($23.5 million), recall analysts Neel Sinha and Lai Gene Lih in an unrated report on Wednesday.
“Management indicated residual inventory had been sold and there was zero additional provisioning risk from this project. This was a key learning lesson for Hi-P leading to the implementation of ERM systems and adoption of a risk-weighted total exposure approach to evaluate clients,” say the analysts.
