Written by The Edge
Hup Soon Global Corporation recorded a net profit attributable to equity holders of the company of US$0.4 million ($0.5 million) in the second quarter ending June 30 (2Q10) compared to a net loss of US$0.2 million in 2Q09.
The better economic environment in 2Q resulted in improved performance for most of the group’s business units. There was a 72.2% increase in revenue to US$46.7 million contributed mainly from better performance of the agriculture tractors segment in Thailand; higher revenue from the automotive aftermarket segment in Malaysia because of the contribution from the distribution of Yokohama batteries; a maiden contribution from the consolidation of TKYB; and translation gain.
The group’s gross profit margin in 2Q10 was 20.9%, compared to 20.6% in 2Q09 and 20.6% for the entire financial year 2009.
Operating costs of the group increased by 50.3% in 2Q10 compared to 2Q09 attributed mainly to the additional costs associated with the new Yokohama automotive batteries business in Malaysia and the consolidation of TKYB’s results in 2Q10.
In 2Q, the group recognised a higher share of associate profit arising from the gross profit of US$0.4 million on the sale of 37% of the total condominium units at the Surawong in Bangkok by its jointly controlled entity Chewathai Hup Soon. As at 31 July 2010, another 23% of the same development was sold.
Dividend : None
