Jadason Enterprises (J03) H1 2023 earnings summary

Executive summary

• HY 2023 revenue fell 38% YoY to S$10.1m, while loss from operations narrowed 49% to S$2.4m as cost controls improved gross profit to S$716k from S$232k.

• Net loss was S$2.5m, versus S$5.0m in HY 2022; basic and diluted loss per share improved to 0.35 cents from 0.69 cents.

Financial highlights

• Revenue was S$10.068m, down 38%; cost of sales fell 41% to S$9.352m and gross profit increased 209% to S$716k.

• Loss from operations improved to S$2.363m from S$4.632m; loss before tax was S$2.517m versus S$4.979m.

• Net foreign exchange loss was S$333k versus S$887k; administrative expenses declined 37% to S$2.404m, mainly from cost controls.

• Finance cost declined 56% to S$154k, reflecting lower lease liabilities and termination of some Dongguan factory leases in H2 2022.

Outlook and guidance

• A broad-based economic recovery in China has yet to occur; sluggish PCB-industry growth and cautious investment plans point to a challenging environment for both segments.

• Continued US-China trade tensions are disrupting some customers’ businesses and manufacturing and support-services work flows; cost controls, rationalisation, liquidity preservation and revenue diversification remain priorities.

• No interim dividend was declared, citing the challenging operating environment.