SINGAPORE - Vegetable processor China Minzhong Food Corp reported on Tuesday (Nov 3) a 73.1 per cent fall in net profit to RMB15.5 million (S$3.41 million) for the first quarter ended on Sept 30.
This was mainly the result of an exchange loss of RMB23.6 million, arising from the revaluation of foreign currency assets and liabilities at the holding company level, it said.
Revenue declined 4 per cent year on year to RMB467.7 million on the back of a 47.6 per cent fall in sales from its beverage business, which was primarily due to the slowdown of the economy and the effects from reduced spending on advertising and promotion.
On going forward, the company said: "The cultivation and processed business segments will continue to face challenges ahead in view of the shortage of rural labour for cultivation activities and rising costs."
"However, the agriculture industry in PRC continues to be strongly supported and favoured by the PRC government, particularly in the use of modern agriculture technology to increase food security," the company added.