SINGAPORE (Feb 23): Raffles United Holdings, formerly known as Kian Ho Bearings, has swung to a profit of $3.6 million for FY17 ended December 2017, from a loss of $6.7 million in the preceding financial year.
Raffles United recorded a 2% improvement in revenue for FY17 to $73.0 million from $71.4 million in FY16 primarily due to contribution from the group's subsidiary, Acee Electric, which was acquired last March and a significant increase in sales contribution from the Original Equipment Manufacturer market in Singapore, Malaysia, Indonesia and Vietnam.
However, the increase in topline was offset by the absence of revenue contribution from the group's Taiwan subsidiary in FY16 of $4.6 million following its disposal in 2H16; stiff competition in the dealers' market primarily in Western and other Asian countries and inventory clearance at reduced prices in FY16.
Raffles United says the improved financial performance in FY17 demonstrated the effectiveness of its overall strategy in managing inventories and cash amid challenging global market conditions. The group expects to be profitable in FY18.
Shares in Raffles United closed at 20 cents on Friday.