After reversing into profitability during the FY2022 ended Sept 30, 2022, Sen Yue Holdings 5BS is reporting another surge in earnings for the 1QFY2023 ended Dec 31, 2022.
During the quarter, the company reported a profit of $12.4 million, up from the $1.1 million loss in the 1QFY2022.
Revenue for the quarter surged around 5.6 times to $29.5 million from the previous period’s $5.2 million. The y-o-y growth was attributable to the normalisation of operating activity after the lifting of the judicial management order placed on the company’s wholly-owned subsidiary, SMC Industrial in August 2022. The transition into the lithium battery recycling business also contributed to the higher revenue, says the company.
While cost of sales went up accordingly, 1QFY2023’s gross profit came in 13.6 times higher at $15.5 million compared to the $1.1 million in the 1QFY2022. Sen Yue’s gross profit margin (GPM) for the quarter rose by 30.6 percentage points y-o-y to 52.4%.
Other operating income also increased by 4.2 times to $331,000 in the 1QFY2023 from $79,000 previously. This was mainly due to the reversal of impairment loss recognised on financial assets of $0.28 million. The reversal stemmed from the overall decrease in overdue account receivables.
Earnings per share (EPS) for the 1QFY2023 stood at 0.42 cents compared to the 0.11 loss per share in the 1QFY2022.
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As at Dec 31, 2022, cash and cash equivalents stood at $19.6 million.
No dividend has been declared. The company says at this time, it is “crucial” for it to preserve cash to fulfil its obligation under the various schemes of arrangement to address its debts and the debts of SMC Industrial.
In the FY2022, the company posted profit of $25.2 million for the year, which is up from its $5.5 million loss in the year before.
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In its profit guidance just days before the release of its full-year results in February, the company attributed the improved earnings to better business performance as it goes back to “normalcy” under its new management.
Shares in Sen Yue remains suspended.
