Zhongxin Fruit has reported higher earnings of RMB29.7 million ($5.33 million) for the full year ended June 30, 2025, up from the RMB2.3 million reported in the same period a year ago.
For the 2HFY2025, the group reversed into earnings of RMB7.9 million.
For the full year, revenue for the group came in 76.4% y-o-y higher at RMB238.7 million. However for the 2HFY2025, revenue declined 8.2% y-o-y to RMB70.5 million.
Zhongxin says that during the financial year, there was a substantial increase in purchasing activity from end customers, which could be driven by efforts to build up inventory levels and ensure supply chain stability.
This surge was largely concentrated in the first half of FY2025, resulting in it recording approximately 138% higher sales in 1HFY2025 compared to 2HFY2025.
Gross profit for FY2025 grew driven by the increase in sales, and gross profit margin improved to 17.2% in the year due to technical and technological upgrades that enhanced production efficiency, leading to better cost optimization, the group says.
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Other income grew due to the increase in interest income, in relation to interest charged by Yuncheng Zhongxin for outstanding accounts receivables.
The group says that it is cognisant that there is significant uncertainty as to whether this level of performance can be sustained in the next reporting period. It is expecting to continue facing a range of headwinds, including elevated tariffs, ongoing trade tensions, rising shipping costs, fluctuating market demand, intensifying competition, and the unpredictable impact of climate change which could affect harvesting conditions and reduces the supply of quality raw materials, leading to the volatility in raw material prices.
Zhongxin Fruit has not declared a dividend for the FY2025 as the company currently does not have retained profits available for the declaration of a dividend.
Shares in Zhongxin Fruit closed 0.8 cents higher or 19.048% up at 5 cents on Aug 28.
