RUBBER producer Halcyon Agri Corporation : 5VJ 0% on Thursday (Feb 29) posted a net loss of US$24.9 million for the six months ended Dec 31, 2023, widening 31 per cent from the net loss of US$19 million in the corresponding year-ago period.

Loss per share for the half year stood at US$0.018, rising by 25.9 per cent from the net loss of US$0.0143 per share in H2 2022.

The loss pushes the group, which had previously reported a net loss of US$62.1 million in H1 2023, further into the red.

For FY2023, the group recorded a net loss per share of US$0.0593, widening from the net loss of US$0.016 per share a year earlier.

The loss came despite an increase in revenue for the group by 20.5 per cent to US$1.7 billion in H2 2023 from US$1.4 billion in the same period a year earlier.

Revenue for the financial year also increased, albeit to a lesser extent, by 7.7 per cent to US$2.9 billion from US$2.7 billion.

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The group attributed the growth in revenue to the increasing sales volume resulting from its initial integration with China Hainan Rubber Industry Group. Hainan Rubber acquired a 36 per cent stake in Halcyon Agri’s shares in H1 2023.

The increase in sales came mostly from China, evidenced by a record-high sales volume in H2 2023 and FY 2023, it added.

However, this increase in sales revenue is partially offset by the lower average selling prices, in tandem with the market-price movement.

To conserve funds for the group’s business activities and working capital requirement, the board of directors has recommended no dividend for FY2023, the same as a year earlier.

“We’ve made good progress on our integration with Hainan Rubber Group during the inaugural year of our merger. As we move into 2024, our focus will shift towards deepening our mutual understanding and unlocking additional synergies to enhance value for all stakeholders,” said Halcyon Agri’s chief executive Li Xuetao.

The mandatory conditional cash offer for Halcyon Agri at S$0.413 per share by Hainan Rubber Group closed on Apr 24, 2023, with the free float dropping to less than 10 per cent. Halcyon Agri shares have been suspended from trading since Apr 25, 2023.