Zixin Group has recorded a net profit of RM7.8 million ($1.4 million) for 1HFY2025 ended September, reversing from its loss in the same period last year.
Earnings per share for the period stood at 0.54 RMB cents, as compared to a loss per share of 0.25 RMB cents for 1HFY2024.
Revenue for 1HFY2025 rose by 33.1% y-o-y to RMB156.7 million. This came on the back of a higher sales volume and sales revenue from fresh sweet potatoes, sweet potato processed products, and sweet potato seedlings. However, this was partially offset by one-off administrative expenses of approximately RMB8.7 million from the issuance of new shares to senior management under the Zixin Performance Share Plan; and the rights cum warrants issue within the period.
Meanwhile, gross profit saw a 49.1% y-o-y to RMB52 million for the period, due to an increase in revenue from the sale of fresh sweet potato recorded in 1HFY2025 as compared to 1HFY2024.
Correspondingly, gross profit margin stood at 33.2%, up from 29.6% in 1HFY2024, driven by better efficiency through the outsourced service of the smart warehouse, which maximised the value of the sweet potatoes.
As at Sept 30, the group maintained a net cash position of RMB136.2 million and a net asset value (NAV) per share of RMB0.39, up from RMB0.37 as at March 31.
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Liang Chengwang, executive chairman and group CEO, says: “With the installation of equipment and machinery for our planned expansion into high-tech manufacturing and the accreditation process of the third-party fermentation and feed manufacturer expected to be completed by the fourth quarter of FY2025, we intend to produce and sell higher-margin food products at our high-tech manufacturing facility, as well as to produce and sell probiotic-infused feed ingredients made from fermented sweet potato agricultural waste, to generate revenue and earnings for the Group from 4QFY2025. We anticipate that the sales revenue from these new products, along with organic growth in our core business operations, will enhance our financial performance in the second half of FY2025.”
Shares in Zixin Group closed flat at 3.1 cents on Nov 13.
