Kingsmen Creatives makes up 3% of my stock portfolio. I have divested all my holdings of Kingsmen Creatives at a loss. As you can see below, even though revenue improved by 1.4% to S$365.9m in FY2019, gross profit fell 5.8% and net profit fell 93.6%. Gross Profit is revenue minus the cost of goods sold. Net Profit is the revenue after deducting all the operating, interest and tax expenses. As we can see, majority of the profit was wiped off by the increase in expenses.
Here are the expenses incurred by Kingsmen Creatives.
Higher depreciation charge on property, plant and equipment due to depreciation charge incurred on the new headquarter building. Increase in employee benefit expenses from new experimental attractions business. Foreign exchange losses. Higher amount of loans and borrowings outstanding in FY2019 compared to FY2018. FY2019 FY2018 Change Revenue S$365.9m S$360.9m 1.4% Gross Profit S$77.2m S$82.0m (5.8%) Net...
