SINGAPORE - SunMoon Food Company's first-quarter net profit fell 77 per cent to $603,000, as its continuing operations posted a sharply lower gross margin and a wider loss.
In addition, disposal gain from subsidiaries almost halved to $1.54 million for the quarter, compared to a gain of $3.05 million last year.
Earnings per share stood at 0.0838 Singapore cent, down from 0.8128 Singapore cent last year.
For the three months to June 30, SunMoon's revenue more than doubled to $15.93 million from $6.17 million last year, largely thanks to sales to Shanghai YiGuo E-Commence Co, which constituted 41.8 per cent of the group's revenue.
However, excluding profits from its discontinued operations, SunMoon actually made a net loss of $841,000 for the quarter from its continuing operations, widening its loss from a $475,000 loss a year ago.
This was mainly due to a lower profit margin, and an increase in its selling and distribution administrative expenses, said the supplier of fruit products and fresh fruits.
Administrative expenses rose 22 per cent to $751,000, mainly attributable to an increase in staff cost, adjustment of prior-year audit fee, and an increase in ERP system's licensing fee, SunMoon said.
Excluding earnings from discontinued operations, loss per share came in at 0.1169 cent, from a loss per share of 0.149 cent a year ago.
No dividend has been declared for the current financial period, unchanged from the preceding year.
Shares in SunMoon closed flat at 5.5 cents apiece on Wednesday.