Zhongxin Fruit has announced earnings of RMB47.43 million ($9.63 million) for the FY2022 ended June, reversing from its RMB3.87 million loss in the FY2021.
For the period, earnings per share (EPS) stood at RMB4.49 on a fully diluted basis.
Revenue for the FY2022 stood at RMB141.8 million, 8.4% higher y-o-y. In the same period, the group recorded higher sales volume due to higher customer demand for concentrated fruit juices. The group’s cost of sales remained relatively stagnant at RMB104.3 million, down 2.3% from FY2021.
FY2022’s gross profit stood 55.8% higher y-o-y at RMB37.5 million as gross profit margin (GPM) improved by eight percentage points y-o-y to 26%. The higher GPM was mainly due to the lower average procurement cost of raw materials and higher operating efficiency which resulted from the implementation of cost control measures.
In the FY2022, the group’s operating profit stood at RMB47.4 million due to the receipt of settlement payment of RMB27.5 million from the ultimate beneficial controlling shareholder of Sanmenxia Tianyu Investment Co., Ltd in the 1HFY2022.
As at June 30, the group’s cash and cash equivalents stood at RMB3.5 million, down from RMB4.7 million in FY2021.
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Despite the strict lockdowns in China in the second half of the financial year, the group says that this did not “materially affect” the procurement and production operations of the fruit juice concentrate business in FY2022 as these activities had been undertaken during the first half of the financial year, prior to the implementation of various strict outbreak prevention measures by the Chinese government.
It adds that Xuzhou Zhongxin has continued the suspension of its fruit juice production due to “operational constraint” and has suspended its garlic processing activities since the end
of FY2021 due to the low demand for garlic in the main importing countries mainly attributable to rising shipping costs and trade and shipping disruptions.
Shares in Zhongxin Fruit closed 0.6 cents or 13.64% up at 5 cents on Aug 24.
