Thanks to gains from disposal of a subsidiary.
GKE Corporation has steered itself back into profitability in 1HFY16 as it posted a net profit of $0.3m, a turnaround from its 1HFY15 net loss of $0.6m.
According to a release by the logistics solutions provider, the pick-up is thanks to gains from its divestment of its subsidiary Ever Flourish Development for RMB15m in a bid to streamline and consolidate its businesses to enhance its competitiveness and efficiencies.
The company’s overall operating expenses tapered by 3% to $5.5m, on back of lower staff costs following the disposal of GKE Air Logistics and lower impairment of available-for-sale investments. This offset, though, by a $152,000 loss from its share of results of associates and joint venture, compared with a profit of $186,000 in 1HFY15
GKE also reported that it expects its newly acquired marine logistics and chemical warehousing capabilities—comprising a 70% stake Marquis Services—to further expand its range of services with immediate earnings contribution.
Looking forward, the company stated that it remains cautiously optimistic amid the slowdown in the industries and uncertainties of the global economic environment which continue to weigh down business activities.
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