SINGAPORE (Feb 27): Sino Grandness Food Industry Group returned to profitability in 4Q17, posting earnings of RMB 4.86 million ($1.01 million), compared to a loss of RMB 106.0 million in 4Q16.
This brings FY17 earnings to RMB 356.0 million, 38.4% lower than FY16 earnings of RMB 577.6 million.
Revenue for the quarter was 66.7% higher at RMB 914.8 million from RMB 548.9 million in the previous year, with higher contributions from all its business segments.
With cost of sales increasing 75.2% y-o-y to RMB 554.1 million, gross profit for 4Q17 was RMB 360.6 million, 55.0% higher than RMB 232.6 million last year.
Distribution and selling expenses dropped 8.6% to RMB 238.8 million from RMB 310.6 million last year.
Finance costs increased by 75.8% to RMB 14.3 million compared to RMB 8.14 million in 4Q16.
During the quarter the group recorded other operating income of RMB 4.51 million, compared to a loss of RMB 14.2 million a year ago, due to foreign exchange gains and interest income from banks.
However, the group saw an 88.4% decline in other operating income for FY17 to RMB 13.8, due to foreign exchange losses as well as the absence of gain on restructuring of convertible bonds and the absence of fair value gain on straight debt component of convertible loan at inception, which contributed to the drop in the group’s FY17 earnings.
Huang Yupeng, chairman and CEO of Sino Grandness says, “To capitalise on the growth opportunities ahead, the Group will continue to invest in various advertising and promotional activities as well as sales and marketing initiatives in order to enhance its brand visibility and expand its online and offline distribution network.”
Shares in Sino Grandness closed flat at 20 cents on Tuesday.
