United Food's FY2017 loss narrows to 68.64m yuan

UNITED Food Holdings, a producer and supplier of soya bean products and animal feed, released its 2017 full year results on Thursday night, which saw it narrow its losses to 68.64 million yuan (S$14.29 million), a fall from the 229.26 million yuan loss it suffered a year ago.

Revenue was 34.93 million yuan for the 12 months ended Dec 31, 2017. The rise in revenue was due to the acquisition of Really Time Trading Limited in August 2017.

The company had clocked zero revenue in both Q4 and FY2017.

United Food's soybean processing division has ceased operations since July 5, 2015, due to anti-pollution restrictions, when the local government in Linyi city ordered more than 50 companies in the region involved in heavy industries and power generation to stop production.

United Food said it has made provision for some 11.6 million yuan in relation to litigation arising from a dispute after closing one of its pig rearing centres in FY2014.

The group added it is currently in the middle of acquiring a business - which it did not name - with involvement in the "development, manufacture and sale of animal feed and animal feed-related products in People's Republic of China".

"This proposed acquisition together with the existing trading business of the Group will improve shareholder value for the group in FY2018 and beyond," United Food added.

"The group's management is dedicated to finding viable solutions to satisfy compliance requirements and mitigate compliance risks, in particular the risks associated with the group's existing operations in Shandong, and the group's exposure to potential claims or disputes in such a volatile period."