SINGAPORE (Aug 8): Wong Fong Industries, the provider of land transport engineering solutions and systems, announced 1H17 earnings decreased 18.2% to $712,000 from $820,000 in 1H16.
The group’s revenue also declined 8% to $28.1 million in 1H17 from $30.6 million in 1H16, mainly due to a decrease in revenue from the Equipment Sales, and the Repairs and Servicing business segments.
This was partially offset by an increase in revenue from the Projects and the Training business segments.
Meanwhile, the Equipment Sales, and Repairs and Servicing businesses were affected by the challenging business and regulatory environment as well as increased competition from new market entrants.
The Projects business grew from more equipment units being completed and delivered while the Training business also grew due as the group secured more WDA approved programs.
Finance costs decreased 10.8% from $0.17 million in 1H16 to $0.15 million in 1H17 mainly due to repayment of bank borrowings.
Eric Lew, Executive Director of Wong Fong, says, “With the Singapore government’s push towards restructuring the economy and helping workers to deepen their skillsets, we see opportunities in this area and we also want to harness the potential our industry value chain presents. Thus we are intensifying our efforts and allocating more resources towards growing the Training business which will expand the Group’s recurring income base.”
Shares in Wong Fong closed at 21 cents on Tuesday.