Hong Wei (Asia) loss dips 2.3% to $6.2m in Q1
The improved (but still negative) result was driven by its particleboards segment.
Hong Wei (Asia) Holdings Company Limited reported its loss declined 2.3% to $6.2m in the first quarter, down from $6.4m in the same period last year.
The decrease in loss was linked to the revenue generated from its particleboards segment which rose 131.7% increase to $67.9m. This is in comparison to the $29.3m revenue generated by the segment in the same quarter in 2020.
The revenue increase was due to the 124.5% increase in the volume of particleboards sold. This is despite the impact of the pandemic as well as the tension between the US and China.
“The Chinese economy continued to face uncertainties under the pressure of the ongoing Sino-United States conflicts and the volatility of worldwide capital markets,” the Group said.
“The negative impacts on the export market have indirectly affected the domestic consumer demand for particleboards.”
Meanwhile, no income generating activity was derived from its forestry segment.
During the period, Hong Wei (Asia) recorded a gross profit of $9.6m, up from $6.6m previously. It was however offset by increases in selling and distribution expenses as well as administration expenses.
Selling and distribution expenses rose 89.5% to $5.7m whilst administration expenses likewise amounted to $5.7m, 27.4% higher year-on-year.
Moreover, finance costs dropped slightly by 5.1% to $6.4m from $6,7m, attributed to the repayment of long-term bank borrowings and other borrowings.