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Midas net profit spikes 39.4% to $2.55m
Thanks to lower tax expense.
A sharp reduction in tax expense gave Midas Holdings a profit boost in the second quarter, but high startup costs eroded the improvement in its revenue and margins.
According to OCBC, the group’s revenue rose 11.3% to $82.1m (RMB 374.3m) on back of higher contributions from its Aluminum Extruded Products division. Gross margins improved to 27.7% while tax expenses fell by 71.4%.
“Midas’ near-term growth outlook remains uncertain, with one of the key risks being the pace and ability to ramp-up of its new business in producing aluminium plates and sheets,” OCBC said.
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