SINGAPORE (Sept 29): Xpress Holdings posted net losses for $21.8 million for FY16, compared with earnings of $314,000 in FY15.

This was mainly due to the recognition of $19.7 million in losses from the disposal of unprofitable subsidiaries as the companies were sold at a $7.42 million discount to its net asset value and included a realised $12.25 million loss on exchange translation reserves.

In 4Q, the group had sold Xpress Print (Shenzhen) Co., Precise Media Group, Xpress Print KL, Xpress Print Hong Kong and its available for sale financial asset, Shenzhen Jiaxingda Printing Co., for $1 million.

For the full year, revenue fell 24.3% to $8.1 million.

For the quarter to July, net losses increased 72-fold to $12.3 million even as revenue rose 19% to $1.9 million due to higher printing revenue and from the 87.8% increase in other income to $92,000, arising from the sale of scrap paper.

Cost of raw materials and consumables such as paper, films and plates increased by 13.9% to $433,000, while staff costs doubled to $973,000.

Foreign currency losses narrowed by 69.2% to $210,000, but other operating expenses rose seven-fold to $198,000 due to the writeback of overaccrued expenses in 4Q15 that was not repeated in the current quarter.

Net loss from the discontinued operations was $105,000 for the quarter and $1.4 million for the full year.

Xpress says it is convening an extraordinary general meeting on Oct 13 to seek shareholders’ approval to add smart technologies, publishing and investment businesses to its existing business activities, acquire an e-commerce company called Amplify Me, and change the company’s name to A-Smart Holdings.

In addition, the group has taken a minority stake in a joint venture company that will operate a supermarket chain in China under the Sheng Siong brand.

Xpress also adds that it continues to explore investment opportunities and remains confident that the existing business will see improvement in its results in FY17 given the disposal of the loss-making unit.

Shares of Xpress are trading at 71.5 cents.

Xpress posts net losses of $21.8 mil for FY16 on disposal of subsidiaries in the red

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Xpress posts net losses of $21.8 mil for FY16 on disposal of subsidiaries in the red

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