SINGAPORE (March 16): Khong Guan, the flour miller and manufacturer of biscuits, shifted back into profitability for the half year ended Jan.
With the stock market staging a recovery, the group said it took the opportunity to dispose of more of its short-term investments compared to the previous period.
The group also recorded an unrealised fair value gain of $15,000 on short-term investments compared to an unrealised fair value loss $1.08 million a year ago.
Earnings for the six months ended January came in at $95,000 compared to a loss of $0.48 million a year ago even as revenue fell 1.74% to $28.7 million while other income fell 55.9% to $89,000.
Its two Malaysian subsidiaries Tong Guan Food Products and Swee Hin Chan Company reported lower sales of $16.2 million and $9.9 million from a year ago while share of results of associates also dropped to $517,000.
On top of new competition from flour millers selling directly to end user, Tong Guan also saw a decrease in the sale of wheat flour and edible goods and lost the distributorship for a line of beverages and dairy products.
Meanwhile, Swee Hin Chan, operating in Penang as wholesalers of wheat flour and starches, lost a major customer, forcing it to make an allowance for doubtful receivables amounting to $360,000.
Looking ahead, Khong Guan is optimistic results for the second half year will be better.
Shares of Khong Guan closed at $2.02 on Thursday.
