It ceased mass market LED light bulb production.
Despite tapered selling and distribution costs, Valuetronics’ 3QFY16 profit crashed 25.8% YoY to HK$25.2 million, or about $4.6m, from 3QFY15’s HK$39.2 million as revenue tumbled.
According to the company’s media release, revenue sank 27.1% to HK$434.5m during the quarter on back of cessation of mass market LED light bulb production, though it was partially offset by a 24.9% surge in industrial and commercial electronics revenue to HK$293.5 million. Correspondingly, gross profit tumbled 15.8% YoY to HK$70.5 million.
The Group’s selling and distribution costs decreased by 12.4% to HK$7.5 million in Q3FY2016, mainly due to its continuous strict control in marketing expenses. Administrative expenses of HK$36.1 million in Q3FY2016 were around the same level as Q3FY2015. Valuetronics also reported that it remains debt-free, with a rise in cash and cash equivalents to HK$681.8 million as at 31 December 2015.
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