Largely in line with the decrease in the group’s sales, gross profit also decreased 19.3% to RMB471.5 million in 1H19.
However, distribution and selling expenses increased 27% to RMB255.6 million while admin expenses increased 57.5% to RMB96.7 million. Finance costs also increased 19.1% to RMB29.8 million.
As at June 30, trade receivables stood at RMB1.49 billion. As at end August, approximately RMB466.8 million of these had been collected.
Cash and cash equivalents stood at RMB545.6 million.
No dividend has been declared for the half year.
In its outlook statement, Sino Grandness said it is optimistic about its FY19 operating performance, barring unforeseen circumstances.
Sino Grandness said it will continue to scale up its strategy of reaching out to engage new customers while strengthening and encouraging consumption through existing and new sales channels.
In May, the group successfully rolled out its products across approximately 1,400 convenience stores within petrol stations operated by PetroChina and Sinopec
Meanwhile, the group continues to work towards the proposed listing of its beverage business -- Garden Fresh Holding Co -- on an international stock exchange. Accordingly, the company in August engaged Maxim Group as joint book runner and investment banker for the possible listing on a stock exchange in the US.
Year to date, shares in Sino Grandness have fallen by 60% to 5.2 cents.
