China Minzhong Q1 profit tumbles 60%

CHINA Minzhong, the vegetable processor which came under fire by shortseller Glaucus Research late in August, yesterday posted a 60 per cent plunge in net profit to 48.4 million yuan (S$9.8 million) for the first quarter ended Sept 30, 2013.

Earnings per share slumped to 0.074 yuan for the quarter, from 0.218 yuan in the previous year.

Its net profit margin tumbled to 7.6 per cent from 19.8 per cent a year ago.

China Minzhong said higher operating costs, mostly labour, and average selling prices not rising fast enough to offset high…