Xpress Holdings’ net profit crashed 51.6% to $200,000 in Q2

Due to higher raw material costs.

Xpress Holdings’ net profit crashed 51.6% to $200,000 in Q2, mainly due to increase in raw material costs in view of the appreciation of US Dollar against Singapore Dollar where the suppliers transferred the increase in prices down to the group.

The Board noted that the group is in negative working capital position as at 31 January 2015 and negative cash flows generated from operating activities of S$49,000 for this quarter ended 31 January 2015.

“As announced on 2 February 2015, the Company is working on a proposed shares and warrants issuance to an investor which when fully completed (including exercise of warrants), will provide up to a total of $23 million proceeds to the Company. This initiative was carried out to enable the Company to augment its cash flow and improve working capital for expansion purposes, as well as to repay outstanding payables,” Xpress Holdings stated.