Willas-Array Electronics (Holdings) Limited provided unaudited consolidated earnings guidance for the first half of fiscal year 2024. For the period, the company expects net loss of approximately HKD 95.2 million for 1H FY2024 as compared to a consolidated net profit of approximately HKD12.8 million for the six months ended September 30, 2022. The expected consolidated net loss for 1H FY2024 was mainly attributable to: (i) a decline in sales revenue of the Group as a result of the weak demand, strong inflation and continuous interest rate increase in 1H FY2024; (ii) a decrease in gross margin due to severe price competition in the overall electronic components market, which has exerted pressure on product margin; (iii) an increase in stock provision made for the slow-moving inventories due to a slowdown of market demand in 1H FY2024 as compared to 1H FY2023 where there was no stock provision; (iv) net impairment losses recognised under expected credit loss on trade receivables in 1H FY2024 as compared to 1H FY2023 where no such impairment losses was made; and (v) an increase in finance costs mainly due to rising weighted average effective interest rate in 1H FY2024 as compared to 1H FY2023.

The adjusted loss attributable to owners of the Company was approximately HKD34.5 million in 1H FY2024, if excluding the stock provision of approximately HKD37.0 million, net impairment losses recognised under expected credit loss on trade receivables of approximately HKD8.4 million, and a net exchange loss of approximately HKD15.4 million.