$LIIHEN (7089.MY)$ Formerly a macam yes furniture stock, thi...
$LIIHEN (7089.MY)$ Formerly a macam yes furniture stock, this quarter even dividends are gone 🥹 A leading furniture manufacturer in Malaysia, specializing in bedroom suite furniture and office furniture. These products are mainly sold to international markets, with North America as the primary export destination (accounting for about 90% of revenue). Its business model focuses on exports, relying on a stable overseas customer base, while maintaining competitiveness through independent design and manufacturing.
Revenue for this quarter: RM0.1498 billion, a decrease of 10.76%, mainly due to weak demand for bedroom suites and office furniture. Pre-tax loss of RM7.618 million, turning from profit to loss. Gross margin declined from 19% last year to 13% this quarter, mainly due to reduced sales and increased operating costs. Net loss of RM6.961 million, with high operating costs (including wages, material costs) further squeezing profit margins.
Operating expenses include a one-time RM7 million allowance for bad debts (for US customer Hillsdale Furniture), and RM8.6 million in exchange losses. The significant fluctuation of the US dollar has greatly affected the company's export revenue. But everyone had anticipated these... However... the bad debts of Hillsdale Furniture are just 🥹🥹🥹
USA customer Hillsdale Furniture announced asset liquidation, leading the company to make full provision for its RM7 million accounts receivable.
Revenue for this quarter: RM0.1498 billion, a decrease of 10.76%, mainly due to weak demand for bedroom suites and office furniture. Pre-tax loss of RM7.618 million, turning from profit to loss. Gross margin declined from 19% last year to 13% this quarter, mainly due to reduced sales and increased operating costs. Net loss of RM6.961 million, with high operating costs (including wages, material costs) further squeezing profit margins.
Operating expenses include a one-time RM7 million allowance for bad debts (for US customer Hillsdale Furniture), and RM8.6 million in exchange losses. The significant fluctuation of the US dollar has greatly affected the company's export revenue. But everyone had anticipated these... However... the bad debts of Hillsdale Furniture are just 🥹🥹🥹
USA customer Hillsdale Furniture announced asset liquidation, leading the company to make full provision for its RM7 million accounts receivable.
Global economic uncertainty and weak customer demand remain the main challenges in the short term. Potential US trade protection policies and exchange rate fluctuations may continue to exert pressure on exports.
#LIIHEN #LiiHenIndustries #FurnitureExports #ExchangeLosses #CostPressures #BadDebtProvisions #GlobalEconomicChallenges #LongTermGrowthPotential
The company officially stated that it is trying to optimize its product mix, increase the proportion of high value-added products to improve profitability. Cost control and improving operational efficiency will be the focus in the future.
#LIIHEN #LiiHenIndustries #FurnitureExports #ExchangeLosses #CostPressures #BadDebtProvisions #GlobalEconomicChallenges #LongTermGrowthPotential
The company officially stated that it is trying to optimize its product mix, increase the proportion of high value-added products to improve profitability. Cost control and improving operational efficiency will be the focus in the future.
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