Medtecs International Corporation is expected to incur a net loss for 4QFY2021, says the company in a Singapore Exchange (SGX) filing on Feb 11.

" Even though 3QFY2021 ended Sept 30, 2021 generated a net profit, the net loss for 4QFY2021 had resulted in a net loss for 2HFY2021. However, the company is still expected to generate a net profit for FY2021," reads the filing.

The net loss for 4QFY2021 was mainly due to inventory provisions for personal protective equipment (PPE) amounting to approximately US$3 million arising from the lower average selling prices for PPE in the current global market.

The medical consumables supplier lowered its average selling price for PPE by about 20%-30% towards the end of FY2021 to remain competitive in the global PPE market, which had led the company to reassess the realisability of some of its inventory items and in turn led to the provisions for 4QFY2021.

" Although the company expects to suffer losses in 4QFY2021 and 2HFY2021, the Board considers that the group&rsquo s overall financial position, cash flow and operations are in a good and stable condition," says the company.

 

Moving forward, the group intends to set up a " Task Force on Growth Initiatives" , which will include the CEO and senior executives of the group, as well as external consultants, if deemed necessary.

To keep pace with sustainability trends, the company is exploring investing in renewable energy " to meet the requests from our clients for more green manufacturing in the future" .

The company presently intends to focus on solar power and energy storage services, including installation of solar panels in existing factories.

For the proposed venture into the renewable energy market, the company will provide further details at the appropriate juncture and, if necessary, seek the necessary approvals from its shareholders, if and when these proposals materialise.

 

members of the Task Force will include the CEO and senior executives of the Group as well as external consultants if deemed necessary.  Meanwhile, to keep pace with sustainability trends, the Company is exploring investing in renewable energy together with external strategic partners to meet the requests from our clients for more green manufacturing in the future. The Company presently intends to focus on solar power and energy storage services, including installation of solar panels in our existing factories. For the proposed venture into the renewable energy market, the Company will provide further details at the appropriate juncture and, if necessary, seek the necessary approvals from its shareholders, if and when these proposals materialise.  This Announcement is based on a preliminary assessment of the latest unaudited consolidated management accounts of the Group, and is not based on any financial figures or information which have been audited or reviewed by the Group&rsquo s auditors. Accordingly, shareholders are cautioned not to place undue reliance on forward-looking statements within this Announcement, which are based on the current view of management regarding future events. The Company is in the process of finalising its financial results for FY2021 and will provide further details of the Group&rsquo s performance with the release of the unaudited consolidated financial results for FY2021 on or before 1 March 2022.