Zhongxin Fruit has guided that it is expected to report a net loss for the 1HFY2021 ended December on Jan 26.
The news comes after it received a query from the Singapore Exchange Regulation (SGX RegCo) due to the unusual movement in its share price and trading volume.
See: Zhongxin Fruit receives SGX query as share price nearly doubles
The expected net loss is due to the impairment recognised by the company’s subsidiaries on its property, plant and equipment due to idle plant and machineries.
The loss is also attributable to the “significantly lower share of profit” of its joint venture company Linyi SDIC Zhonglu Fruit Juice in 1HFY2021 compared to the same period a year ago.
This is mainly due to lower revenue and gross profit recorded in Linyi SDIC attributed to decreased sales volume.
The group will post its finalised 1HFY2021 results on or before Feb 14.
Shares in Zhongxin Fruit closed 3.3 cents higher or 106.5% up at 6.4 cents, representing a 52-week high.
