China Star Food Group posts profit net of tax of 8m yuan for Q3, down 33.7% from a year ago

CHINA Star Food Group posted a profit net of tax of eight million yuan (S$1.7 million) for the third quarter ended Dec 31, down 33.7 per cent from 12.1 million yuan a year ago.

Revenue fell 20.2 per cent to 92.3 million yuan for the quarter, as the group's Zilaohu factory only commenced its production in mid-September 2017 after a halt in its production activities.

Earnings per share stood at 3.13 RMB cents, down from 4.72 RMB cents a year ago. No dividend was declared for the quarter.

The group said that the revenue attained in the quarter under review was in line with the management's expectation.

The group's strategy and outlook for the Zilaohu factory are to continue its current focus on the production of high-value products which are able to fetch a higher profit margin.

The levels of production of the group's other and less value-added products in its product range currently outsourced to third-party subcontractors will be determined by market demands and sales performance, said the group.

China Star Food said that the group will continue to focus its attention and efforts on its revenue recovery plan for the remainder of FY2018, and expects its production to be restored to normal levels by early FY2019.

It added that the construction of the centralised water treatment plant is still in progress and that the interim arrangement with the contract operator of the water treatment plant for the disposal of waste water is presently "working well".