InnoTek is informing shareholders that following a preliminary review of its financial results, it expects to report a net loss for 1HFY2022 ended June.
In its July 14 announcement, the group is attributing its loss to increased operating costs as labour and manufacturing costs have risen, while disruptions to the global supply chain have resulted in higher cost of raw materials; and prolonged movement restrictions imposed within China as part of its “Dynamic Zero” Covid-19 policy. These restrictions severely impacted the group’s major customers’ businesses in China, which in turn hampered the its revenue growth in 1HFY2022.
To recap, InnoTek recorded earnings of $4.3 million in 2HFY2021, representing a 57.8% y-o-y decline from $10.1 million. For its FY2021 period, earnings were 17.0% lower y-o-y at $11.5 million. Revenue was also registered a decline for the 2HFY2021 and FY2021 periods.