Willas-Array Electronics (Holdings) says it expects to record a consolidated net profit of HK$36.9 million ($6.3 million) for the 3QFY2021 ended December.

The figures were based on the board’s preliminary assessment of the unaudited consolidated management accounts of the group.

The net profit comes as the group recorded a HK$4.5 million loss in the same period a year ago.

The group is also expecting to record net profit of HK$59.3 million for the 9MFY2021 or y-t-d 3QFY2021 compared to a net los of HK$60.3 million last year.

The group says the net profit is mainly attributable to an increase in sales revenue during the quarter driven by a y-o-y increase from its industrial and automotive segments.

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The group says it also registered an increase in gross profit margin in 3QFY2021 mainly due to a “significant decrease” in the clearance of buffer stocks compared to the year before.

Willas-Array received non-recurring subsidies under the Employment Support Scheme under the Anti-epidemic Fund launched by the Hong Kong Special Administrative Region Government, which contributed to the higher figure.

The reduction and exemption of corporate social insurance premiums granted by the Chinese government as part of their Covid-19 relief measures during 3QFY2021 helped, too.

Lastly, the group says the exchange gain of some HK$9.9 million, compared to last year’s exchange gain of HK$4.2 million, both due to the appreciation of the renminbi, contributed to the higher numbers.

Shares in Willas-Array closed flat at 41 Singapore cents on Jan 14.