TRIO-TECH INTERNATIONAL
For the period ended Dec 31, 2024. Filed Feb 13, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2024 · Filed Feb 13, 2025
TRT$4.70+3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0001437749-24-034421
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-31; filed 2025-02-13.
0001437749-25-003692
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 97 previous paragraphs and 126 current paragraphs.
34 unchanged; 39 reworded; 46 added; 24 removed; 0 previous and 7 current paragraphs rearranged.
Tables are not compared: 13 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (46)
Current report
Semiconductor Back-end Solutions
Current report
Industrial Electronics
Current report
SBS revenue experienced a decline across all SBS operations except Malaysia operation. The demand reduced for both testing services and product sales. The semiconductor market downturn impacted the segment's overall performance. The demand for these services is heavily influenced by the broader semiconductor industry outlook, as well as market trends and customer forecasts. Given the inherent challenges in accurately predicting market fluctuations, it remains difficult to anticipate shifts in demand with precision. However, the company is in a strong position to take advantage of any recovery in the industry and is looking into new ways to expand its services, which should help drive growth in the future.
Current report
IE revenue experienced a decline due to a decrease in demand for electronic components. The demand for the IE segment is primarily driven by a combination of factors, including fluctuations in customer product demand, evolving market conditions, and the capital expenditure budgets and forecasts of our customers. However, our strength as value-added reseller enables us to respond quickly when industry changes. Over the longer term, management believes this strategy positions us well to sustain growth and enhance market resilience.
Current report
Gross profit margin as a percentage of revenue in the IE segment decreased by 3.3% to 17.3% for the three months ended December 31, 2024, from 20.6% for the same period in Fiscal 2024. In absolute dollar amounts, gross profit in the IE segment for the three months ended December 31, 2024, was $485, indicating a decrease of $400, compared to $885 in the same period in Fiscal 2024. The decline is primarily attributable to lower demand for electronic components, coupled with an unfavorable product mix in equipment sales. In the IE segment, a portion of the cost of sales consists of fixed costs, which, when spread over lower revenue, leads to a decrease in the gross profit margin.
Current report
Selling expense decreased by $72, or 29.0%, from $248 to $176 for the three months ended December 31, 2024, compared to the same period in Fiscal 2024. The reduction in selling expenses was mainly due to a decline in commissions paid to agents, along with lower business travel costs.
Current report
(Loss) / Income from Operations
Current report
Loss from operations was $3 for the three months ended December 31, 2024, a decrease of $680, compared to income of $677 from operations for the same period in Fiscal 2024. The decline was mainly due to the reduced revenue arising from weaker demand in our core markets, reflecting broader industry trends. Management remains committed over cost control initiatives, including tighter non-discretionary spending, to ensure the company is well-positioned to capitalize on future growth opportunities once the market stabilizes.
Current report
Other Income / (Expense)
Current report
Other Income / (Expense) for the three months ended December 31, 2024 and 2023 was as follows:
Current report
Other income increased by $768 to $686 for the three months ended December 31, 2024 as compared to other expense of $82 for the same period in Fiscal 2024. The increase was primarily driven by a favorable foreign currency movement, resulting in an exchange gain for the three months ended December 31, 2024, compared to an exchange loss for the same period in Fiscal 2024.
Current report
In the three months ended December 31, 2024, the Company received government grants amounting to $5 related to capital expenditure subsidy received from the China government.
Current report
During the same period in Fiscal 2024, the Company received government grants amounting to $4, related to capital expenditure subsidy received from the China government.
Current report
Earnings per Share
Current report
Income from operations from the SBS segment was $97 compared to income from operations of $342 in the same period in Fiscal 2024. The decrease in income from operations was due to a decrease in revenue and gross profit in absolute dollar amounts. Operating expense remained fairly cons istent at $1,645 and $1,640 for the three months ended December 31, 2024 and 2023, respectively.
Current report
Loss from operations in the IE segment for the three months ended December 31, 2024, was $23, a decline of $317 from income from operations of $294 in the same period in Fiscal 2024. The decline was mainly attributable to a decrease in revenue and gross profit in absolute dollar amounts. Operating expense was $508 and $591 for the three months ended December 31, 2024 and 2023, respectively. The decrease in operating expenses was mainly contributed to lower selling expense and corporate overhead incurred for the period.
Current report
Comparison of the Six Months Ended December 31, 2024, and December 31, 2023
Current report
Overall Gross Margin
Current report
Overall gross margin as a percentage of revenue increased marginally by 0.4% to 24.6% for the six months ended December 31, 2024, from 24.2% for the same period of Fiscal 2024. Gross profits decreased by $834 to $4,540 for the six months ended December 31, 2024, from $5,374 for the same period in Fiscal 2024.
Current report
Gross profit margin as a percentage of revenue in the SBS segment increased by 2.3% to 27.9% for the six months ended December 31, 2024, as compared to 25.6% for the same period in Fiscal 2024. The Company managed to achieve a modest improvement in gross profit margin despite the decline in revenue in the SBS segment, driven by lower cost of sales which helped mitigate the impact of revenue decline in SBS segment. The lower cost of sales was due to reduced depreciation charges, as some of the assets in China operations were fully depreciated as at the end of second quarter of Fiscal 2024. In absolute dollar amounts, gross profit in the SBS segment for the six months ended December 31, 2024, was $3,536, a decrease of $326, compared to $3,862 in the same period in Fiscal 2024. The decrease in absolute dollar of gross profit is attributed to the decline in revenue.
Current report
Gross profit margin as a percentage of revenue in the IE segment decreased by 3.8% to 17.9% for the six months ended December 31, 2024, compared to 21.7% in the same period in Fiscal 2024. In absolute dollar amounts, gross profit in the IE segment for the six months ended December 31, 2024, was $1,024, indicating a decrease of $511, compared to $1,535 in the same period in Fiscal 2024. The decline is primarily attributable to lower demand for electronic component sales, coupled with an unfavorable product mix of equipment sales. In the IE segment, a portion of the cost of sales consists of fixed costs, which, when spread over lower revenue leads to a decrease in the gross profit margin.
Current report
Operating Expense
Current report
Operating expense for the six months ended December 31, 2024 and 2023 was as follows:
Current report
General and administrative expense decreased marginally by $46, or 1.2%, from $3,975 to $3,929 for the six months ended December 31, 2024, compared to the same period in Fiscal 2024.
Current report
Selling expense decreased by $109, or 25.1%, from $435 to $326 for the six months ended December 31, 2024, compared to the same period in Fiscal 2024. The decrease in selling expenses was mainly due to lower commission costs, driven by a decline in commissionable revenue, as well as a decrease in business travel expenses.
Current report
Income from Operations
Current report
Income from operations was $130 for the six months ended December 31, 2024, a decrease of $546, compared to income of $676 from operations for the same period in Fiscal 2024. The decrease was mainly due to lower revenue and gross profit in absolute dollars amount across all business segments.
Current report
Interest Expense
Current report
Interest expense for the six months ended December 31, 2024 and 2023 was as follows:
Current report
Interest expense was $26 for the six months ended December 31, 2024, a decrease of $20, or 43.5%, compared to $46 for the same period of Fiscal 2024 due to lower utilization of credit facilities.
Current report
Other Income
Current report
Other Income for the six months ended December 31, 2024 and 2023 was as follows:
Current report
Other income increased by $207 from $114 to $321 for the six months ended December 31, 2024 compared to the same period in Fiscal 2024. The increase is primarily due to a favorable foreign currency effect for the six months ended December 31, 2024 compared to an unfavorable foreign currency impact during the same period in Fiscal 2024.
Current report
Government Grant
Current report
Income Tax Expense
Current report
Non-controlling Interest
Current report
Net income attributable to Company’s common shareholders was $271 for the six months ended December 31, 2024, a decrease of $466, compared to the net incomeof $737 for the same period in Fiscal 2024.
Current report
Earnings per Share
Current report
Basic earnings per share from continuing operations was $0.06 for six months ended December 31, 2024 as compared to basic earnings per share of $0.18 for the same period of Fiscal 2024. Basic earnings per share from discontinued operations were $nil for six months ended December 31, 2024 and December 31, 2023 respectively.
Current report
Segment Information
Showing the first 40 of 46 passages. Open the source sections for the rest.
Removed paragraphs (24)
Previous report
Semiconductor Back-end Solutions (SBS)
Previous report
Industrial Electronics (IE)
Previous report
Semiconductor Back-end Solutions (SBS)
Previous report
SBS revenue decreased as a result of lower demand for testing services, but this was partially offset by increased product sales in the Singapore operation.
Previous report
Demand for service in SBS segment depends on the overall outlook of the semiconductor industry and any changes taking place in the market and our customers’ forecasts. As it is challenging to forecast fluctuations in the market accurately, management believes it is necessary to maintain testing facilities in close proximity to the customers in order to make it convenient for them to send us their newly manufactured parts for testing and to enable us to maintain a share of the market.
Previous report
Demand for products in SBS segment is dependent on semiconductor capital spending, which is likely to slow down over the next two quarters, with a potential improvement thereafter.
Previous report
Industrial Electronics (IE)
Previous report
There has been a recovery of the demand for electronics components and display products from our customers compared to the same period of Fiscal 2024. Demand for the Industrial electronics segment varies depending on the demand for our customers’ products, the changes taking place in the market, and capital spending budgets and forecasts of our customers. Hence it is difficult to forecast fluctuations in the market accurately.
Previous report
Gross profit margin as a percentage of revenue in the IE segment decreased by 4.6% to 18.5% for the three months ended September 30, 2024, compared to 23.1% in the same period in Fiscal 2024. In absolute dollar amounts, gross profit in the IE segment for the three months ended September 30, 2024, was $539, indicating a decrease of $23, compared to $562 in the same period in Fiscal 2024. Gross profit margin of the Industrial Electronics segment is not only affected by the market price of the products we sell, but also the mix of products, which frequently changes because of fluctuations in market demand. Gross profit margin declined despite revenue growth, primarily due to an increase in sales of lower-margin products.
Previous report
Selling expense decreased by $37, or 19.8%, from $187 to $150 for the three months ended September 30, 2024, compared to the same period in Fiscal 2024. The decrease in selling expense was primarily attributable to a decrease in commission-based sales.
Previous report
Income / (Loss) from Operations
Previous report
Income from operations was $133 for the three months ended September 30, 2024, an increase of $134, compared to loss of $1 from operations for the same period in Fiscal 2024. The increase was primarily driven by lower operating expenses resulting from effective cost control measures.
Previous report
Other (Expense) / Income
Previous report
Other (Expense) / Income for the three months ended September 30, 2024 and 2023 was as follows:
Previous report
Other expense increased by $561 from other income of $196 to other loss of $365 for the three months ended September 30, 2024 compared to the same period in Fiscal 2024. The increase was primarily driven by an unfavorable foreign currency impact, with an unrealized translation effect of $460 for the three months ended September 30, 2024, compared to $81 for the same period in Fiscal 2024.
Previous report
Our net income is impacted by the overall strengthening or weakening of the U.S. dollar since the functional currency of our foreign subsidiaries is not the U.S. dollar. During the three months ended September 30, 2024, exchange rate movement negatively impacted our net income due to the strengthening of the Singapore dollars against the U.S. dollar.
Previous report
(Loss) / Earnings per Share
Previous report
Semiconductor Back-end Solutions (SBS)
Previous report
Industrial Electronics (IE)
Previous report
Cash and cash equivalents were $8,948 at September 30, 2024, reflecting a decrease of $1,087 from $10,035 as at June 30, 2024. This decrease is primarily due to payments made to suppliers, who have shorter payment terms compared to our customers, who are on longer payment terms.
Previous report
Other receivables at September 30, 2024, were $655, an increase of $114, compared to $541 as at June 30, 2024. The increase was mainly due to receivables relating to expense reimbursement from customers, and refundable services taxes in the Singapore operation.
Previous report
Accounts payable decreased by $800 to $2,375 at September 30, 2024, compared to $3,175 at June 30, 2024 due to payments made to suppliers, who have shorter payment terms.
Previous report
Contract liabilities increased by $73 to $827 at September 30, 2024 as compared to $754 at June 30, 2024 due to the increase in customers’ deposits received in the Singapore operations.
Previous report
Net cash used in operating activities increased by $1,881 to an outflow of $1,857 for the three months ended September 30, 2024, from an outflow of $24 for the same period in Fiscal 2024. The decrease in net cash flow used in operating activities was primarily due to net loss of $223 compared to net income of $207 in the same period of Fiscal 2024 and lower receipts from trade receivables by $269, lower depreciation of $760, higher cash outflow from prepaid expense and other current assets by $73, and higher cash outflow from accounts payable, accrued expense and contract liabilities by $4,173. These are partially offset by higher unrealized foreign exchange loss of $379, cash inflow for other receivables by $618 and higher cash inflow for inventories by $2,323.
Reworded paragraphs (39)
Previous wording
In the first quarter of Fiscal 2025, we made changes in our business strategy in an effort to better align with our focus areas and to streamline operations. While the semiconductor industry is and will remain a major market for Trio-Tech, an important component of our strategy is to reduce our historic concentration on this industry. As a result, we have decided to organize our operating businesses based on the markets that we serve. Beginning in Fiscal 2025, we report our financial performance based on our new segments, Semiconductor Back-end Solutions and Industrial Electronics.
Current wording
In the first quarter of Fiscal 2025, we made changes in our business strategy in an effort to better align with our focus areas and to streamline operations. While the semiconductor industry is and will remain a major market for the Company, an important component of our strategy is to reduce our historic concentration on this industry. As a result, we have decided to organize our operating businesses based on the markets that we serve. Beginning in Fiscal 2025, we report our financial performance based on our new segments, Semiconductor Back-end Solutions and Industrial Electronics.
Previous wording
“Semiconductor Back-end Solutions” (“SBS”) segment comprises of our core semiconductor back-end manufacturing and testing operations that serve the semiconductor industry. Our value-added distribution business, along with our services and equipment manufacturing operations that serve various industries will be reported together in our “Industrial Electronics” (“IE”) segment. A mapping of our previous presentation and the revised segments is as presented below:
Current wording
“Semiconductor Back-end Solutions” (“SBS”) segment comprises of our core semiconductor back-end manufacturing and testing operations that serve the semiconductor industry. Our value-added distribution business, along with our services and equipment manufacturing operations that serve various industries will be reported together in our “Industrial Electronics” (“IE”) segment. A mapping of our previous presentation and the revised segments is presented below:
Previous wording
First Quarter Fiscal Year 2025 Highlights
Current wording
Second****Quarter Fiscal Year 2025 Highlights
Previous wording
The following table sets forth our revenue components for three months ended September 30, 2024 and 2023.
Current wording
The following table sets forth our revenue components for both three and six months ended December 31, 2024 and 2023.
Previous wording
Revenue for the three months ended September 30, 2024 was $9,799, a decrease of $167 when compared to the revenue of $9,966 for the same period of Fiscal 2024. As a percentage, revenue decreased by 1.7% for the three months ended September 30, 2024, when compared to revenue for the same period of Fiscal 2024.
Current wording
Revenue for the three and six months ended December 31, 2024 was $8,619 and $18,418, respectively, a decrease of $3,583 and $3,750, respectively, when compared to the revenue of $12,202 and $22,168 for the same period of Fiscal 2024. As a percentage, revenue decreased by 29.4% and 16.9% for the three and six months ended December 31, 2024, when compared to revenue for the same period of Fiscal 2024.
Previous wording
Revenue within our three current segments for the three months ended September 30, 2024, is discussed below.
Current wording
Revenue within our two current segments for the three and six months ended December 31, 2024, is discussed below.
Previous wording
Revenue in the SBS segment as a percentage of total revenue was 70.2% and 72.0% for the three months ended September 30, 2024, a decrease of 1.8% of total revenue when compared to 72.0% in the same period of Fiscal 2024. Total SBS revenue decreased by $297 to $6,879 from $7,176 for the three months ended September 30, 2024, respectively.
Current wording
Revenue in the SBS segment as a percentage of total revenue was 67.4% and 68.9% for the three and six months ended December 31, 2024, an increase of 2.7% and 0.9% of total revenue when compared to 64.7% and 68.0% in the same period of Fiscal 2024. Total SBS revenue decreased by $2,087 to $5,809 from $7,896 and decreased by $2,384 to $12,688 from $15,072 for the three and six months ended December 31, 2024, respectively.
Previous wording
Revenue in the IE segment as a percentage of total revenue was 29.7% for the three months ended September 30, 2024, an increase of 1.8% of total revenue when compared to 27.9% in the same period of Fiscal 2024. Total IE revenue increased by $131 as compared to the same period in Fiscal 2024.
Current wording
Revenue in the IE segment as a percentage of total revenue was 32.5% and 31.0% for the three and six months ended December 31, 2024, representing a decrease of 2.7% and 1.0% compared to 35.2% and 32.0% in the same period of Fiscal 2024. Total IE revenue decreased by $1,499 from $4,300 to $2,801 and decreased by $1,368 from $7,083 to $5,715 for the three and six months ended December 31, 2024, respectively, compared to the same period of Fiscal 2024
Previous wording
As of September 2024, although we have seen improvements in both our operations and those of our suppliers, we may continue to experience supply shortages as well as inflationary cost pressures in at least the near term. Risks and uncertainties related to supply chain challenges, and inflationary pressures may continue to negatively impact our revenue and gross margin. We continue to monitor and evaluate the business impact to react proactively.
Current wording
We may experience supply shortages as well as inflationary cost pressures in at least the near term. Risks and uncertainties related to supply chain challenges, and inflationary pressures may continue to negatively impact our revenue and gross margin. We continue to monitor and evaluate the business impact to react proactively.
Previous wording
Overall gross margin as a percentage of revenue decreased by 1.6% to 23.7% for the three months ended September 30, 2024, from 25.3% for the same period of Fiscal 2024. Gross profits decreased by $198 to $2,322 for the three months ended September 30, 2024, from $2,520 for the same period in Fiscal 2024.
Current wording
Overall gross margin as a percentage of revenue increased by 2.3% to 25.7% for the three months ended December 31, 2024, from 23.4% for the same period of Fiscal 2024. Gross profits decreased by $636 to $2,218 for the three months ended December 31, 2024, from $2,854 for the same period in Fiscal 2024.
Previous wording
Gross profit margin as a percentage of revenue in the SBS segment decreased marginally to 26.1% for the three months ended September 30, 2024, as compared to 26.2% for the same period in Fiscal 2024. The company managed to maintain its gross profit margin at the same level despite a decline in revenue, attributed to effective cost control measures implemented across the company and reduced depreciation charges since some of the assets in China operations were fully depreciated as at end of second quarter of previous fiscal year. In absolute dollar amounts, gross profit in the SBS segment for the three months ended September 30, 2024, was $1,794, indicating a decrease of $174, compared to $1,880 in the same period in Fiscal 2024. The decrease in absolute dollar of gross profit margin is attributed to the decrease in sales.
Current wording
Gross profit margin as a percentage of revenue in the SBS segment increased by 4.9% to 30.0% for the three months ended December 31, 2024, as compared to 25.1% for the same period in Fiscal 2024. The increase in gross profit was primarily driven by lower costs, resulting from reduced depreciation charges, as certain assets in the China operations were fully depreciated by the end of the second quarter of the previous fiscal year. In absolute dollar amounts, gross profit in the SBS segment for the three months ended December 31, 2024, was $1,742, a decrease of $240, compared to $1,982 in the same period in Fiscal 2024. The decrease in the absolute dollar of gross profit margin is attributed to the decrease in revenue.
Previous wording
General and administrative expense decreased by $194, or 9.0%, from $2,158 to $1,964 for the three months ended September 30, 2024, compared to the same period in Fiscal 2024. The decrease in general and administrative expense was mainly attributable to lower remuneration related expenses compared to same period of Fiscal 2024.
Current wording
General and administrative expense increased by $148, or 8.1%, from $1,817 to $1,965 for the three months ended December 31, 2024, compared to the same period in Fiscal 2024. The increase in general and administrative expense was primarily due to increase in manpower cost to cater to the Malaysia and Singapore business expansion and an increase in allowance for expected credit losses compared to same period of Fiscal 2024.
Previous wording
Interest expense was $13 for the three months ended September 30, 2024, a decrease of $11, or 45.8%, compared to $24 for the same period of Fiscal 2024 due to lower utilization of credit facilities. As of September 30, 2024, the Company had an unused line of credit of $6,134 as compared to $6,205 as at September 30, 2023.
Current wording
Interest expense was $13 for the three months ended December 31, 2024, a decrease of $9, or 40.9%, compared to $22 for the same period of Fiscal 2024 due to lower utilization of credit facilities. As of December 31, 2024, the Company had an unused line of credit of $5,719 as compared to $5,256 as at December 31, 2023.
Previous wording
The Company's income tax expense was $51 and $37 for the three months ended September 30, 2024, and 2023, respectively. Income tax expense increased due to increase of chargeable income in our China operation which partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.
Current wording
The Company's income tax expense was $139 and $95 for the three months ended December 31, 2024, and 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.
Previous wording
As of September 30, 2024, we held a 55% interest in Trio-Tech (Malaysia) Sdn. Bhd., Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd., and 52% interest in PT. SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd and 51% interest in Trio-tech JiangSu Co. Ltd. The share of non-controlling interest in the net income from the subsidiaries for the three months ended September 30, 2024 was $13 compared to the share of loss from the non-controlling interest of $23 for the same period of Fiscal 2024. The increase in the net income shared by non-controlling interest in the subsidiaries was attributable to the increase in net income generated by the Company’s Malaysia operations.
Current wording
As of December 31, 2024, we held a 55% interest in Trio-Tech (Malaysia) Sdn. Bhd., Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd., and 52% interest in PT. SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd and 51% interest in Trio-tech JiangSu Co. Ltd. The share of non-controlling interest in the net income from the subsidiaries for the three months ended December 31, 2024 was $22 compared to the share of loss from the non-controlling interest of $21 for the same period of Fiscal 2024. The increase in the net income shared by non-controlling interest in the subsidiaries was attributable to the increase in net income generated by the Company’s Malaysia and China operations.
Previous wording
Net (Loss) / Income Attributable to Trio-Tech International Common Shareholders
Current wording
Net Income Attributable to Trio-Tech International Common Shareholders
Previous wording
Net loss attributable to Company’s common shareholders was $236 for the three months ended September 30, 2024, a change of $466, compared to a net income of $230 for the same period in Fiscal 2024.
Current wording
Net income attributable to Company’s common shareholders was $507 for the three months ended December 31, 2024, compared to a net income of $507 for the same period in Fiscal 2024.
Previous wording
Basic loss per share from continuing operations were $0.06 for three months ended September 30, 2024 as compared to basic earnings per share of $0.06 for the same period of Fiscal 2024. Basic earnings per share from discontinued operations were $nil for three months ended September 30, 2024 and September 30, 2023 respectively.
Current wording
Basic earnings per share from continuing operations were $0.12 for three months ended December 31, 2024 as compared to basic earnings per share of $0.12 for the same period of Fiscal 2024. Basic earnings per share from discontinued operations were $nil for three months ended December 31, 2024 and December 31, 2023 respectively.
Previous wording
Diluted loss per share from continuing operations were $0.06 for three months ended September 30, 2024 as compared to diluted earnings per share of $0.05 for the same period of Fiscal 2024. Diluted earnings per share from discontinued operations were $nil for three months ended September 30, 2024 and September 30, 2023.
Current wording
Diluted earnings per share from continuing operations were $0.12 for three months ended December 31, 2024 as compared to diluted earnings per share of $0.12 for the same period of Fiscal 2024. Diluted earnings per share from discontinued operations were $nil for three months ended December 31, 2024 and December 31, 2023.
Previous wording
The revenue, gross margin, and income / (loss) from operations for each segment during the first quarter of Fiscal 2025 and Fiscal 2024 are presented below. As the revenue and gross margin for each segment were discussed in the previous section, only the comparison of income / (loss) from operations is discussed below.
Current wording
The revenue, gross margin, and income / (loss) from operations for each segment during the second quarter of Fiscal 2025 and Fiscal 2024 are presented below. As the revenue and gross margin for each segment were discussed in the previous section, only the comparison of income / (loss) from operations is discussed below.
Previous wording
The revenue, gross margin and income / (loss) from operations for the SBS segment for the three months ended September 30, 2024 and 2023 were as follows:
Current wording
The revenue, gross margin and income from operations for the SBS segment for the three months ended December 31, 2024 and 2023 were as follows:
Previous wording
In the three months ended September 30, 2024, the Company received government grants amounting to $66, $62 of which was an incentive from the Singapore government for local resident recruitment, and $4 related to capital expenditure subsidy received from the China government.
Current wording
In the six months ended December 31, 2024, the Company received government grants amounting to $71, $62 of which was an incentive from the Singapore government for local resident recruitment, and $9 related to capital expenditure subsidy received from the China government.
Previous wording
During the same period in Fiscal 2024, the Company received government grants amounting to $73, $16 of which was financial assistance received from the Singapore government, and the remaining $57 from the US government related to Employee Retention Credit (“ERC”).
Current wording
During the same period in Fiscal 2024, the Company received government grants amounting to $77, $16 of which was financial assistance received from the Singapore government for local resident recruitment, and $57 from the U.S. government related to Employee Retention Credit (“ERC”).
Previous wording
Income from operations from the SBS segment was $177 compared to loss from operations of $40 in the same period in Fiscal 2024. The increase in income from operations was mainly due to a decrease in operating expenses. Operating expense was $1,618 and $1,920 for the three months ended September 30, 2024 and 2023, respectively. The decrease in operating expense incurred in three months ended September 30, 2024 compared to the same period in Fiscal 2024 was mainly attributable to lower remuneration related expenses and corporate expenses. SBS also incurred a loss from disposal of fixed asset in the three months ended September 30, 2023.
Current wording
Income from operations from the SBS segment was $274 compared to income from operations of $302 in the same period in Fiscal 2024. The decrease in income from operations was mainly due to a decrease in revenue in absolute dollar amounts. Operating expense was$3,262 and $3,560 for the six months ended December 31, 2024 and 2023, respectively. The decrease in operating expense was mainly due to a gain from disposal of fixed asset, lower performance-based remunerations and also lower selling expenses for the six months ended December 31, 2024 compared to the same period in Fiscal 2024
Previous wording
Loss from operations in the IE segment for the three months ended September 30, 2024, was $7, a decrease of $197 from income from operations of $190 in the same period in Fiscal 2024. The decrease was mainly attributable to a decrease in gross profit due to lower margin sales. Operating expense was $546 and $460 for the three months ended September 30, 2024 and 2023, respectively. The increase was mainly due to higher general and administrative expenses and corporate expenses.
Current wording
Loss from operations in the IE segment for the six months ended December 31, 2024, was $30, a decline of $514 as compared to income from operations of $484 in the same period in Fiscal 2024. The decline was mainly attributable to a decrease in gross profit in absolute dollar amounts. Operating expense was $1,054 and $1,051 for thesix months ended December 31, 2024 and 2023, respectively.
Previous wording
During the three months ended September 30, 2024, total assets increased by $400 to $42,940 compared to $42,540 as of June 30, 2024. The increase was primarily due to an increase in trade accounts receivable, other receivables, property, plant and equipment and restricted term deposits which was partially offset by a decrease in cash and cash equivalents, inventories, operating lease right-of-use assets and other assets.
Current wording
During the six months ended December 31, 2024, total assets decreased by $2,740 to $39,800 compared to $42,540 as of June 30, 2024. The decrease was primarily due to a decrease in trade accounts receivable, inventories, operating lease right-of-use assets and property, plant and equipment, which was partially offset by an increase in cash and cash equivalents and other receivables.
Previous wording
The trade accounts receivable balance as of September 30, 2024 increased by $1,433 to $12,094, from $10,661 as at June 30, 2024, primarily due to foreign currency exchange movement between June 30, 2024 and September 30, 2024 coupled with an increase in revenue from customers that have longer credit term in Singapore operations. The number of days’ sales outstanding in accounts receivables for the group was 104 days and 90 days for the first quarter of Fiscal 2025 and the end of Fiscal 2024, respectively.
Current wording
The trade accounts receivable balance as of December 31, 2024 decreased by $780 to $9,881, from $10,661 at June 30, 2024, primarily due to the decrease in revenue between June 30, 2024 and December 31, 2024. The number of days’ sales outstanding in accounts receivables for the group was 101 days and 90 days for thesecond quarter of Fiscal 2025 and the end of Fiscal 2024, respectively.
Previous wording
Inventories at September 30, 2024, were $2,872, a decrease of $290, compared to $3,162 as at June 30, 2024. The decrease in inventories is mainly attributed to fulfilment of orders in our Singapore operations. The volume of purchase have also reduced in response to a slowdown in customer demand.
Current wording
Inventories at December 31, 2024, were $1,957, a decrease of $1,205, compared to $3,162 at June 30, 2024. The decrease in inventories was primarily due to the fulfilment of orders in our Singapore operations, coupled with a reduction in purchase volumes in response to a slower customer demand.
Previous wording
Prepaid expense was $593 as at September 30, 2024. This mainly relates to the prepayment for insurance, rental and software license fee.
Current wording
Prepaid expense was $548 as at December 31, 2024 compared to $536 at June 30, 2024. This mainly relates to the prepayment for insurance, rental and software license fee.
Previous wording
Investment properties’ net in China was $404 at September 30, 2024 and $407 as at June 30, 2024. The decrease was primarily due to the foreign currency exchange movement between June 30, 2024 and September 30, 2024.
Current wording
Investment properties’ net in China was $372 at December 31, 2024 and $407 at June 30, 2024. The decrease was primarily due to the depreciation charged and foreign currency exchange movement between June 30, 2024 and December 31, 2024.
Previous wording
Property, plant and equipment increased by $336 from $5,937 at June 30, 2024, to $6,273 as at September 30, 2024, mainly due to the foreign currency exchange movement between June 30, 2024 and September 30, 2024 and partially offset by depreciation charged for the period.
Current wording
Property, plant and equipment decreased by $343 from $5,937 at June 30, 2024, to $5,594 at December 31, 2024, mainly due to depreciation charged for the period.
Previous wording
Other assets decreased by $107 to $125 as at September 30, 2024 compared to $232 at June 30, 2024. Other assets mainly comprise of rental and utilities deposits.
Current wording
Other assets decreased by $103 to $129 at December 31, 2024 compared to $232 at June 30, 2024. Other assets mainly comprise of rental and utilities deposits.
Previous wording
Accrued expense decreased by $374 to $3,260 at September 30, 2024, as compared to $3,634 at June 30, 2024. The decrease in accrued expense was mainly due to decrease in accrued purchases.
Current wording
Accrued expense decreased by $939 to $2,695 at December 31, 2024, as compared to $3,634 at June 30, 2024. The decrease in accrued expense was mainly due to payments made out of provisions and a decrease in accrued purchases.
Previous wording
Bank loans payable increased by $49 to $923 as of September 30, 2024, as compared to $874 as of June 30, 2024. The increase is mainly due to the foreign currency exchange movement between June 30, 2024 and September 30, 2024 coupled with repayment made.
Current wording
Bank loans payable decreased by $92 to $782 as of December 31, 2024, as compared to $874 as of June 30, 2024. The decrease was mainly due to the repayment made coupled with foreign currency exchange movement between June 30, 2024 and December 31, 2024 .
Previous wording
Finance leases decreased by $18 to $73 at September 30, 2024, as compared to $91 at June 30, 2024. This was due to the repayments of leases in our Singapore and Malaysia operations.
Current wording
Finance leases decreased by $37 to $54 at December 31, 2024, as compared to $91 at June 30, 2024. This was due to the repayments of leases in our Singapore and Malaysia operations.
Previous wording
Operating lease right-of-use assets and the corresponding lease liability decreased by $261 to $1,626 at September 30, 2024, as compared to $1,887 at June 30, 2024. This was due to the repayment made and the operating lease expense charged for the period.
Current wording
Operating lease right-of-use assets and the corresponding lease liability decreased by $690 to $1,197 at December 31, 2024, as compared to$1,887 at June 30, 2024. This was due to operating lease expense charged for the period and also partially driven by a shift in our business model in one of our China operations, resulting in a decrease in operating lease right-of-use assets and the corresponding lease liabilities due to the reduced need for space.
Previous wording
Other non-current liabilities increased marginally to $30 as at September 30, 2024, as compared to $27 as at June 30, 2024.
Current wording
Other non-current liabilities increased to $30 as at December 31, 2024, as compared to $27 at June 30, 2024.
Previous wording
Net cash provided by investing activities decreased by $733 to $81 for the three months ended September 30, 2024 compared with the same period in Fiscal 2024. The decrease in cash inflow was primarily due to decrease in withdrawal from unrestricted term deposits and proceeds from disposal of assets held-for-sale.
Current wording
Net cash provided by investing activities decreased by $896 to $240 for the six months ended December 31, 2024 compared with the same period in Fiscal 2024. This was primarily due to a net withdrawal from unrestricted term deposits which matured for the six months ended December 31, 2023, and were held for working capital purposes.
Previous wording
Net cash used in financing activities for the three months ended September 30, 2024, was $93, representing a decrease of $237, compared to cash inflow of $144 during the three months ended September 30, 2023. The decrease in cash outflow for financing activities was mainly due to decrease of settlement of lines of credit of $ 270 relating to the prior year in three months ended September 30, 2023. The decrease was partially offset by proceeds from lines of credit. In the three months ended September 30, 2024, no lines of credit were utilized.
Current wording
Net cash used in financing activities for the six months ended December 31, 2024, was $183, representing a decrease of $463, compared to cash inflow of $280 during the six months ended December 31, 2023. The changes in cashflow from financing activities was mainly due to cash inflow from the stock option exercise and net proceeds from lines of credit for the six months ended December 31, 2023. which were not present during the six months ended December 31, 2024
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
The following table sets forth certain consolidated statements of income data as a percentage of revenue for the six months ended December 31, 2024 and 2023 respectively:
Current report — wording carried from elsewhere
The Company's income tax expense was $190 and $132 for the six months ended December 31, 2024, and 2023, respectively. Income tax expense increased due to lower deferred tax assets in our Singapore operation, driven by lower provisions, which reduced the deductible temporary differences. This was partially offset by lower GILTI tax due to lower chargeable income derived from controlled foreign corporation.
Current report — wording carried from elsewhere
As of December 31, 2024, we held a 55% interest in Trio-Tech (Malaysia) Sdn. Bhd., Trio-Tech (Kuala Lumpur) Sdn. Bhd., SHI International Pte. Ltd., and 52% interest in PT. SHI Indonesia. We also held a 76% interest in Prestal Enterprise Sdn. Bhd and 51% interest in Trio-tech JiangSu Co. Ltd. The share of non-controlling interest in the net income from the subsidiaries for the six months ended December 31, 2024 was $35 compared to the share of loss from the non-controlling interest of $44 for the same period of Fiscal 2024. The increase in the net income shared by non-controlling interest in the subsidiaries was attributable to the increase in net income generated by the Company’s Malaysia and China operations.
Current report — wording carried from elsewhere
Net Income Attributable to Trio-Tech International Common Shareholders
Current report — wording carried from elsewhere
Diluted earnings per share from continuing operations were $0.06 for six months ended December 31, 2024 as compared to diluted earnings per share of $0.17 for the same period of Fiscal 2024. Diluted earnings per share from discontinued operations were $nil for six months ended December 31, 2024 and December 31, 2023.
Current report — wording carried from elsewhere
The revenue, gross margin, and income from operations for each segment for the six months ended December 31, 2024 and 2023 are presented below. As the revenue and gross margin for each segment were discussed in the previous section, only the comparison of income / (loss) from operations is discussed below.
Current report — wording carried from elsewhere
The revenue, gross margin, and (loss) / income from operations for the IE segment for the six months ended December 31, 2024 and 2023 were as follows: