AGTech posts narrowed loss in 16H2

HK-listed AGTech Holdings Limited says it has narrowed its loss after tax for 16H2, attributed to improvement in gross profit margin and decrease of selling and administration expenses.

In a filing to the Hong Kong Stock Exchange, the company reported its loss after tax decreased approximately 40 percent for the six months ended June 30 to HK$33.8 million, from HK$56.3 million in 2015.

“Such decrease was mainly attributable to the gain from changes in fair value of contingent consideration payables; improvement of the gross profit margin; and decrease of the selling and administrative expenses… partially offset by the increase of the share-based payments,” said the company.

Revenue for the period was down 24.2 percent  to HK$76.6 million in 16H2, mainly due to reduced sales of lottery hardware products during the period.

“The supply of lottery hardware in the PRC is highly regulated with only a small number of approved suppliers. Revenue in this business typically exhibits an irregular pattern since not only are sales not on a commission basis but also the customer base is concentrated and the timing of orders from customers can be variable. Thus, while over longer periods of time, orders and revenues tend to be stable, in the short term volatility can be seen,” said the company in its filing.

The board did not recommend the payment of an interim dividend.