Continue reading this on our app for a better experience

Open in App
Home Capital Results

Zhongxin Fruit earnings slump to RMB5.97 mil, down 87.4% for FY2023

Bryan Wu
Bryan Wu • 2 min read
Zhongxin Fruit earnings slump to RMB5.97 mil, down 87.4% for FY2023
Some major apple producing areas in China suffered a heatwave in FY2023, resulting in higher procurement costs compared to FY2022.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Zhongxin Fruit 5EG -

has posted earnings of RMB5.97 million ($1.11 million) for its FY2023 ended June 30, a 87.4% decline y-o-y from the RMB47.40 million reported in FY2022 due to a challenging operational environment and higher other operating income in the previous financial year.

Earnings per share (EPS) for FY2023 stood at RMB0.57, down from RMB4.49 in FY2022.

The company recorded lower revenue of RMB114.5 million in FY2023, down 19.3% y-o-y compared to its revenue of RMB141.9 million. Zhongxin Fruit’s cost of sales also decreased 13.2% to RMB90.53 million in FY2023.

In its filing, the company says some major apple producing areas in China suffered a heatwave in FY2023, greatly reducing the harvest of apples and resulting in a shortage of quality raw materials and higher procurement costs as compared to FY2022. After consideration, its subsidiary Yuncheng Zhongxin decided to reduce the level of production in FY2023.

On the back of the lower revenue, gross profit also decreased by 36.0% to RMB24.0 million for the financial year just ended. The relatively higher cost of sales, contributed by the higher cost of raw materials outweighed the increase in average selling price of the concentrated fruit juices, resulted in the company recording a lower gross profit margin of 21% in FY2023 as compared to 26% in FY2022.

The earnings slump is also attributed to the 85.6% y-o-y decrease of other operating income to RMB4.49 million compared to FY2022, in which Zhongxin Fruit was the recipient of a settlement payment of RMB27.5 million from Sanmenxia Tianyu Investment in relation to a successful indemnity claim.

See also: LHN Group reports strong occupancy rates for key projects in 3QFY2023; sees steady growth for rest of 2HFY2023

In its outlook, Zhongxin Fruit says that while it continued to be profitable in FY2023, sustaining the performance of its business remains challenging in the mid- to long-term, with market demand fluctuating and harvesting conditions remaining unpredictable.

Meanwhile, headwinds such as competition, cost pressures brought about by escalating logistical and shipping costs, inflation, rising interest rates, as well as the evolving geopolitical and trade conflicts will continue to present volatility in the economy and drive the company’s operating costs higher.

Shares in Zhongxin Fruit closed flat at 2.8 cents on Aug 25.

Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.