Tuesday, November 3, 2015

China Minzhong sees 73.1% decline in 1Q earnings to RMB15.5 million

China Minzhong Food Corp posted a 73.1% y-o-y decline in 1Q earnings to RMB15.5 million ($3.4 million).

For the three months to September, revenue decreased 4% to RMB467.7 million.

Revenue from the processed business segment and fresh vegetables segment remained relatively constant.

Revenue from trading of mushroom spores increased 72.6% to RMB67.3 million due to timing difference of mushroom spores trading.

The group’s beverage business’ revenue fell 47.6% to RMB58.8 million due to the slowdown of the economy and the effect arising from a reduction in advertising and promotion expenses as it reviews this segment.

Looking ahead, the group says the cultivation and processed business segments will continue to face challenges in view of the shortage of rural labour for cultivation activities and rising costs.

However, it notes that the agriculture industry in China continues to be “strongly supported and favoured” by the government, particularly in the use of modern agriculture technology to increase food security.

China Minzhong shares closed 0.65% lower at 77 cents on Monday.

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