Weak demand for its aluminum products and components dragged its revenue down.
According to its financial statement, in spite of posting growth in the sales of its aluminum products in Singapore and Malaysia markets, overall level of sales were negatively affected by delays in certain project orders. Sales in Malaysian markets would have also increased significantly if it had not been affected by the downward movement of the Ringgit against the Singaporean dollar.
The slowdown was further aggravated by weak performance from its components distribution division and planned reduction of sales to PRC stockists as New Wave moves to consolidate its inventory portfolio.
To respond to lackluster sales, the company made a deliberate effort to reduce spending this financial year as it posted 4.8% decrease to $1.58m in administrative expenses and 14.1% decrease to $0.19m in distribution costs with the exception of finance costs which grew by 19.3% to $0.07m.
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