Fu Yu Corporation has reported revenue of $34.7 million for the 1QFY2021 ended March, 0.3% lower than revenue of $34.8 million for the 1QFY2020.

The figure was supported by the stronger sales of the group’s operations in Singapore, which was offset by the lower sales from the China segment in the 1QFY2021 compared to the corresponding period the year before.

Gross profit jumped 23.2% y-o-y to $8.5 million in the quarter. Gross profit margin (GPM) expanded 4.7 percentage points y-o-y to 24.5% due to the change in revenue mix, as well as the group’s ongoing initiatives to improve cost management and raise operational efficiencies.

Operating profit more than doubled to $4.6 million in the 1QFY2021 from $1.8 million, lifted by higher gross profit.

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Revenue in Singapore grew 20.6% y-o-y to $12.9 million in the 1QFY2021 mainly due to the medical segment which achieved higher sales on the back of increased demand from existing customers.

Revenue for the Malaysia segment fell 3.3% y-o-y to $8.8 million in the quarter. Malaysia operations recorded higher sales of medical products and product tools, which helped to cushion against the impact of slower consumer product sales.

Revenue for the China segment fell 13.3% y-o-y to $13.0 million, attributable mainly to reduced sales from the printing and imaging segment as a result of lower orders and the cessation of the group’s factory orders in Chongqing in the last quarter of the FY2020.

Fu Yu’s China operations registered increased sales of networking & communications products which partially mitigated the decline in revenue derived from printing & imaging products.

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The group’s net US dollar assets position benefitted from the appreciation of the US dollar against the Singapore dollar and the Malaysia ringgit contributed to a foreign exchange gain of $1.4 million in 1QFY2021.

As at March 31, the group had cash holdings of $108.2 million and zero borrowings.

Shareholders’ equity stood at $177.3 million, equivalent to net asset value of 23.5 cents per share, including cash and cash equivalents of around 14.4 cents per share.

Shares in Fu Yu closed flat at 32 cents on May 7.