Halex narrows net loss in 4th quarter

PETALING JAYA: Halex Holdings Bhd saw its net loss for the fourth quarter ended Dec 31, 2017 narrow to RM6.21 million from a net loss of RM21.16 million a year ago as it recorded a gain on disposal of RM7.53 million for its associate company Kensington Development Sdn Bhd.

The group registered revenue of RM18.36 million, representing an increase of 56.3% as compared to RM11.75 million in the corresponding quarter of the preceding year, mainly contributed from the increase in revenue from the agriculture supplies and trading segment.

For the full year period, Halex saw a net loss of RM12.4 million, which narrowed from a net loss of RM21.95 million a year ago, mainly due to gain of disposal of the associate company.

The group reported revenue of RM69.04 million, an increase of 0.6% as compared to RM68.65 million in the corresponding year-to-date.

On its prospects, it said the group’s current business environment faces internal and external challenges such as foreign currency fluctuation, consumer sentiment, intense competition and availability of alternative substitutes.

The company had on Dec 6, 2017, entered into a heads of agreement with Hextar Holdings Sdn Bhd for the proposed acquisition of four shares of US$0.10 each (41 sen each) in Hextar Chemicals Limited (HCL), representing the entire equity interest.

“The board is of the view that, with the strategies and merger with HCL Group, moving forward, the group financial performance is expected to show a better improvement and is prepared to embrace the challenges ahead.”