Wo Kee Hong recovers after cutting costs

Audio-visual equipment supplier Wo Kee Hong says it should return to profitability this year after two years of losses.

Chief executive Richard Lee Man-fai said it made a profit in the first quarter after cutting operating costs.

'Our inventory level was trimmed from $1 billion to $500 million by the end of last year and most of the obsolete stock has been cleared,' he said.

A weak yen also lifted profit margins by about 3 per cent.

Wo Kee Hong had losses attributable to shareholders of $236 million last year, up from $18 million in 1995.