Miyoshi reported $0.36 million in earnings for 1QFY2021, reversing from its $0.18 million loss from a year ago.

Earnings per share (EPS) for the quarter came in at 0.06 cents compared to the loss per share of 0.01 cent a year ago.

Revenue fell 10.7% y-o-y to $12.5 million, largely driven by the decline in revenue from data storage and consumer electronics due to lower business volume from Covid-19.

The lower revenue was offset by an increase in revenue from the automotive segment contributed by the increase in sales orders from Miyoshi’s China subsidiary.

Other income more than doubled to $0.18 million during the quarter, mainly due to the government grant of $56,000 received from the Jobs Support Scheme (JSS).

An increase in miscellaneous income of $36,000 which was one-off in 1Q2021 and an increase in the gain on disposal of plant and equipment of $12,000, also contributed to the higher figure.

Total costs and expenses fell 11.1% y-o-y to $12.3 million due to lower raw material consumables, employee benefit expenses and other operating expenses.

As at Nov 30, 2020, cash and cash equivalents stood at $5.0 million.

“The resurgence of the Covid-19 pandemic continues to cause disruptions in the operations of the group’s factories due to their respective country’s travel and movement restrictions,” says the group on Jan 14.

“Despite the on-going vaccinations efforts and gradual resumption of the group’s operations, the group continues to maintain a cautious outlook for the rest of the financial year.”

“The group is expecting to receive partial compensation in 2QFY2021 in relation to the fire incident and is working with its insurer on the balance insurance compensation. The Group has received the proceeds in full pertaining to the proposed disposal and has utilised the net proceeds of RMB12.4 million ($2.5 million) for general working capital and to repay part of existing bank borrowings,” it adds.

The proposed disposal is, however, pending completion due to the additional time required for the completion of administrative procedures in China relating to the land title documents.

Shares in Miyoshi closed 0.1 cent higher or 2.9% up at 3.5 cents on Jan 14.