HLT Global suffers net loss in first quarter post-listing

PETALING JAYA: HLT Global Bhd, which was listed on the ACE Market of Bursa Malaysia in January this year, suffered a net loss of RM206,000 for the first quarter ended March 31, 2017 (Q1 FY17).
This is the second consecutive quarter of net loss for the group, which reported a net loss of RM1.74 million in the fourth quarter ended Dec 31, 2016 (Q4 FY16). Prior to listing, the group reported a net profit of RM1.65 million in the third quarter ended Sept 30, 2016.
In a filing with Bursa Malaysia last friday, the group said the Q1 FY17 net loss was due to lower revenue and the listing expenses incurred. Revenue for the quarter stood at RM9.56 million, 38.9% lower than RM15.64 million in Q4 FY16.
"The decrease in revenue was mainly attributable to decline in revenue from sale of new lines. The revenue from sale of new lines was mainly contributed by five customers, made up of a combination of three local orders and two foreign orders," it said.
The group said it recorded lower revenue from sale of new lines as most of the orders are near completion.
However, it said that it achieved higher gross profit margin of 12.89% during the quarter compared with 10.12% in the preceding quarter. It also secured a new foreign order from Vietnam which is expected to contribute positively to its revenue.
"The above, coupled with the incurrence of listing expenses of RM295,000 during the current financial quarter, has resulted in the group recording a pre-tax loss of RM197,000 for the current financial quarter," it said.
Moving forward, it said that it is "cautiously optimistic" of its performance and will continue to execute its business strategies. It has also put in place a series of future plans to strengthen its position in the glove-dipping line industry in Malaysia and overseas.