Hai Leck Holdings announced that its earnings for FY2021 ended June has surged by some 194% to $12.1 million, compared to just $4.1 million in FY2020, mainly due to higher other income and lower overall expenses.
Revenue was however 7.2% lower at $88.5 million, compared to $95.4 million a year ago, due to lower project and maintenance services revenue.
As cost of sales were 14.4% lower y-o-y at $46.9 million, gross profit for FY2021 came in 2.7 % higher y-o-y at $41.6 million.
Other income increased by 72% to $9.3 million from $5.4 million in the previous year, mainly due to higher amount of government grants recognised and write-back of impairment loss on property, plant and equipment.
Overall expenses declined in FY2021, as distribution and selling expenses were 28.6% lower y-o-y at $0.4 million, administrative expenses declined by 2.8% to $28.9 million, other expenses fell by 42.8% to $6.5 million and interest expenses were 13.9% lower at $0.2 million.
As at end-June, cash and cash equivalents stood at $89.0 million.
The board has declared a final dividend of 2 cents per share and a special dividend of 4 cents per share, as opposed to zero dividend in the preceding year.
Looking forward, the current global health situation continues to negatively impact both the global and local economy. Hence, the group admits that the duration of the impact of this pandemic remains unpredictable.
"Our project and maintenance services are proceeding at a cautious pace and are contingent upon safe management measures implemented to contain and control the pandemic," says the group in its results release.
As at Aug 26, shares in Hai Leck closed at 49 cents.
Photo: Hai Leck