SINGAPORE - Lower profit from discontinued operations and fair value losses on financial liabilities arising from the contingent issuance of shares took a toll on SunMoon Food as it reversed into the red with a full-year net loss of $4.3 million, compared to a net profit of $1.6 million a year ago.
This translated to a loss per share of 0.6 cent, from an earnings per share of 0.27 cent previously.
Revenue for the fruit distributor and food ingredients maker, however, rose 62 per cent to $72.6 million, mainly due to higher sales to Shanghai Yiguo E-Commerce Co. Sales to Yiguo constituted 63.2 per cent of the group's revenue for the year, the company said.
No dividend has been declared, unchanged from the previous year.
Meanwhile, fair value losses on financial liabilities of $2.1 million from the contingent issuance of shares for FY18/19 was due to the increase in expected losses according to terms and conditions to the shares placement agreement with Yiguo in 2016 and 2017, compared to a fair value gain on financial liabilities of $1.3 million in FY17/18.
The group's profit from discontinued operations for FY18/19 also came in at $1.5 million, down from a profit of $4.1 million in the preceding year.
This was mainly due to a $1.5 million gain from the disposal of its US subsidiaries in the latest fiscal year, compared to a $3.5 million gain from the disposal of its subsidiaries in China, and a $0.3 million tax refund from its US subsidiaries in FY17/18, SunMoon said.
Looking ahead, the group noted that its operating environment remains "challenging and competitive", and that it will continue to focus on its value-added fresh fruits products in China and South-Asia.
The company was placed on the Singapore Exchange watchlist in December last year under the minimum trading price (MTP) criteria, for failing to maintain a six-month volume-weighted average trading price of 20 Singapore cents and a $40 million market cap.
The company has three years from Dec 5, 2018, to cure this status, or risk being delisted.
With regards to this, SunMoon noted in a regulatory filing on Tuesday that its board continues to monitor its financial position and business growth. It added that the group has been exploring various options to meet the MTP exit criteria, and will update on any material information, as and when it arises.
SunMoon shares last traded unchanged at 2.8 cents on May 27. The company has a market cap of about $20.2 million as at May 28.