CMON’s gross profit decline, from 47.5% to 39.8%, was attributed to the increase in fixed costs. Cost of sales decreased as inventories declined and shipping and handling costs dropped. The company also reported a decrease in the sales of advertising space on their website.
Expenses also increased for the game maker due to increase marketing efforts, namely the participation in large scale game conventions.
The company also incurred extra costs related to an application to transfer their stock listing from Growth Enterprise Market (GEM) to the main board. (which they let lapse yet again)
CMON’s stock continued to slide, closing at 0.16 HKD on Friday, a decrease of 30.4% over last years price.