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Sino Grandness back in the black with Q4 net profit of 2.6m yuan
MAINBOARD-LISTED Sino Grandness Food Industry on Tuesday posted a net profit of 2.6 million yuan (S$522,000) for the fourth quarter ended Dec 31, 2019, a turnaround from its net loss of 188.8 million yuan for the same period the year before - despite a dip in revenue.
This was mainly due to the cessation of internal production, which accounted for 227.3 million yuan the year before. The company also noted a reduction in costs of sales, which has fallen 44.7 per cent to 283.3 million yuan from the year before.
Revenue fell 24.4 per cent to 462.3 million yuan from 797.5 million yuan, due to the “decreased sales of beverages and its canned products in overseas and domestic markets”. Canned products from overseas markets took the biggest hit, down 65.6 per cent to 28.4 million yuan for the three months ended Dec 31.
Quarterly earnings per share was 0.2 RMB cents , reversing from a loss per share of 19.3 in the corresponding quarter in 2018.
For the full year, net profit came in at 223.4 million yuan, up 44.9 per cent from the year before, despite a drop in revenue for the same period. This comes on the back of a fall in the cost of sales, down 14.8 per cent to 2.0 billion yuan from the previous year.
Revenue fell 14.7 per cent to 3.0 billion yuan, as per the fall in sales from its beverages and canned foods. Sales dipped most significantly at 46 per cent for its customers from North America.
Earnings per share was 21.2 RMB cents, versus 15.7 RMB cents for 2018.
Sino Grandness shares closed up 0.001 Singapore cents or 9.09 per cent, at S$0.012 on Tuesday before the results were announced.