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China Kangda swings back into the black for FY18

CHINA Kangda Food Company, which sells chicken and rabbit meat, posted a net profit of 5.64 million yuan (S$1.13 million) for its financial year ended Dec 31 2018, reversing from a loss of 15.78 million yuan a year ago.

This is mainly attributed to the decreased mortality rate of its chickens as a result of better weather in FY2018.

Revenue stood at 1.40 billion yuan for FY18, up 5.1 per cent from 1.34 billion yuan previously.

There is no dividend declared for the year, similar to FY17.

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The group said that it received a lift from the swine fever epidemic as demand shifted from pig meat to chicken meat, resulting in higher selling prices. Lower bank borrowings and interest charges also contributed to the better results, said the group.

In its outlook, the group said the development of the food industry will continue to face challenges with low growth and intense competition.

"To maintain the overall profitability and to enhance the competitiveness and resistance against market risk, the group will focus on high value-added chicken-related processed foods, to safeguard the business relationship with major customers and to proactively explore new markets and new customers," it added.

The group said it is confident that the demand for rabbit meat will "increase steadily" with further improvement of living standards and as more consumers seek a wider variety of nutritious foods.

It added that it has invested in innovation and technology in the rabbit industry, and is tapping research and development to develop "new, high value-added healthcare and biological products".