Willas-Array Electronics Reports FY2025 Net Loss of HK$66.1 Million Amid Revenue Decline
Summary:
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Revenue Decline: For the fiscal year ended 31 March 2025, Willas-Array Electronics (Holdings) Limited reported revenue of HK$2.5 billion, reflecting a 7.99% decrease from the previous year.
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Net Loss: The company recorded a net loss of HK$66.1 million for FY2025, a significant improvement compared to the HK$169.2 million loss in FY2024.
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Gross Profit Margin: Gross profit margin slightly increased to 4.0% from 3.8% the year before, mainly due to reduced inventory impairment.
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Operating Expenses: Administrative expenses dropped by 35.2% to HK$111.2 million, indicating effective cost-cutting efforts.
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Finance Costs: Finance costs decreased by 48.8% to HK$26.9 million, driven by a lower weighted average effective interest rate.
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Balance Sheet Highlights: Inventories declined by 41.3% to HK$415.9 million, and trade receivables fell by 13.2% to HK$708.4 million. The net gearing ratio rose to 141.4% as of 31 December 2024.
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Cash Flow: The company recorded net cash outflow of HK$86.5 million from operating activities, due to reductions in trade payables, inventories, and trade receivables.
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Outlook: While the reduction in net loss and slight gross margin improvement are positive signs, the elevated net gearing and cash flow constraints remain key areas to monitor.