Willas-Array (00854) released its annual performance for the year ending on March 31, 2024. The group's revenue is 2.665 billion Hong Kong dollars, a 15% decrease year-on-year. Shareholders' losses amounted to 169 million Hong Kong dollars, compared with a surplus of 2.716 million Hong Kong dollars in the same period last year. The loss per share was 193.13 Hong Kong cents.
Due to (i) weak demand, strong inflation, and sustained high-interest rates in the 2024 fiscal year, the group's sales revenue decreased; (ii) the fierce price competition in the overall electronic components market led to pressure on the group's product's gross margin, resulting in a decrease in gross margin; (iii) compared with the inventory provision transferred back in the 2023 fiscal year, the inventory provision for slow-moving inventory recorded in the 2024 fiscal year increased due to the market demand slowdown; (iv) the expected credit losses on trade receivables in the 2024 fiscal year resulted in a net loss on the impairment of credit expected to be recovered, while the 2023 fiscal year saw a reversal of impairment losses; and (v) compared with the 2023 fiscal year, financing costs increased in the 2024 fiscal year, mainly due to the increase in the weighted average actual interest rate.
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