H1 2023 financial results signal warning of losses, says Soon Lian

Soon Lian, a company listed on the SGX, anticipates reporting a consolidated net loss for the six-month period ending June 30. This contrasts the consolidated net profit achieved during the same period in the previous year. The expected loss is attributed to a decrease in sales revenue and an increase in the allowance for the impairment of inventories.

The Board of Directors of Soon Lian Holdings Limited has announced that following a preliminary review of the unaudited results for the half year ended 30 June 2023 (“HY2023”), the Group is expected to report a consolidated net loss, compared to a consolidated net profit in the corresponding prior year period.

The company stated, "The main factors contributing to the expected loss are a decline in sales revenue and a higher allowance for impairment on inventories, both of which were attributable to the challenging market conditions in HY2023. The Group has been impacted by weaker demand for its products in the precision engineering segment as a result of the weaker global semiconductor industry."

Singapore-headquartered Soon Lian has built a strong reputation as a specialist supplier of aluminium alloy products over the course of 35 years. The Group's origins can be traced back to its inception as Soon Lian Hardware Pte Ltd.

Growing steadily, it laid the basis for establishing the Group, which is now an international supplier with operations and warehouses in Singapore, China, Malaysia and Taiwan. Soon Lian has also expanded its customer base, building a diversified clientele of over 1,000 customers in more than 15 countries, including Australia, Hong Kong, India, Indonesia, Malaysia, Philippines, China, Singapore, South Korea, Taiwan, Thailand, UAE and Vietnam.

On late July 27, the company announced that it would disclose the financial results of the aluminium alloy parts supplier on August 14 at the bourse.