Southern Packaging has issued a profit guidance for the 1HFY2022 ended June, expecting a net loss due to lower sales revenue and profit margin.
In a Singapore Exchange (SGX) filing on July 21, Southern Packaging says its sales were affected by the lockdown in Shanghai and surrounding areas due to the recent resurgence of the Covid-19 cases. “As a result, the group's production and delivery plans were affected during the period.”
Meanwhile, its lower profit margin was due to an increase in purchase price of raw materials, labour costs and energy costs.
The group's production and delivery plans to Shanghai and surrounding areas are “back to normal progressively” as the Covid-19 cases were under control in June, says Southern Packaging.
The company will announce its 1HFY2022 results on or before Aug 14.
Jen Shek Chuen, a substantial shareholder of Southern Packaging Group, recently added to his stake. On July 8, Jen paid $134,865 for 299,700 shares, or 45 cents each. This brings his total holdings in the China-based packaging manufacturer to just over 10.8 million shares, or 15.39%, from 14.96% earlier.
See also: Southern Packaging Group shareholder and ex-Marco Polo chairman up respective stakes
Just around a fortnight before, another substantial shareholder of the company was in the market — but to sell. Berry Plastics Asia on June 23 sold 250,000 shares for $112,150.54, or 44.9 cents each. With this, it is left with 5,575,000 shares — equivalent to 7.93% — down from 8.28% previously.
Jen is listed as the third largest shareholder in Southern Packaging’s FY2021 annual report, as of March 15. The company’s co-founder, executive chairman and CEO Pan Shun Ming — as indicated in the annual report — holds 27.4 million shares, or equivalent to 38.94%. His wife Mai Shuying, the company’s co-founder and chief financial officer, is the second largest shareholder with 17.9 million shares or 25.49%.
Shares in Southern Packaging closed flat at 45 cents on July 21.
