Khong Guan posts H1 loss of S$636,000

BISCUIT maker Khong Guan saw its net loss widen slightly to S$636,000 for the half year ended Jan 31, 2020, from S$634,000 a year ago, the mainboard-listed company announced in a bourse filing on Thursday evening.

Loss per share stood at 2.46 Singapore cents for the six-month period, unchanged from the preceding year.

This came as revenue slipped 8.7 per cent to S$29,078, from S$31,831 a year earlier.

The decrease in earnings was due to lower sales of animal feed and starches, which affected the turnover of Swee Hin Chan Company, the group's subsidiary in Penang, as well as a short supply of biscuits and the loss of certain customers faced by Sabah-based subsidiary Tong Guan Food Products.

Khong Guan noted that the group's operations continued to be affected by higher cost of raw materials and keen market competition.

In addition, with the uncertainties surrounding the Covid-19 virus outbreak, directors of the company envisage another challenging environment for the second half of the year, the company said.

Khong Guan shares closed at S$1.84 on Thursday before its results release, up S$0.07 or about 4 per cent.