SINGAPORE (June 14): ecoWise, the provider of resource recovery, renewable energy and integrated environmental solutions in Singapore and Malaysia, saw 2Q attributable losses widen to $1.4 million from $0.7 million a year ago mainly due to lower revenue, share of losses from associates and jointly-controlled entity and higher administrative expenses.
Revenue fell 23.8% to $11.3 million, dragged down by a decrease in sales from the group’s resource recovery segment which saw a decline in the sale of retreaded tyres and rubber compounds business under the Sunrich Resources Sdn Bhd (SRR Group), foreign translation effect caused by the weaker Malaysian Ringgit and decrease in tipping fees from collection of tree and wood waste.
Administrative expenses increased by 20.4% to $2.31 million mainly due to increase in manpower cost attributable to higher headcount, entertainment expenses and equity-settled share-based expenses.
As a result, 2Q saw a 10.3% fall in gross profit to $2.43 million from a year ago.
The group also reported higher share of losses from associates and jointly-controlled entity of $0.12 million incurred by Chongqing eco-CTIG Rubber Technology Co., Geocycle Singapore and China-UK Low Carbon Enterprise Co.
Looking ahead, ecoWise says the SRR Group continues to face challenging market conditions due to economic and market uncertainties of both raw material and product and foreign currency fluctuations, in particular that of the Malaysian Ringgit.
The group is rationalising and reorganising its businesses to achieve a higher level of efficiency, economies of scale and effectiveness.
Shares in ecoWise closed flat at 2.9 cents.
