The company recorded higher revenue of RMB58.4 million in 1HFY2024, up 10.8% y-o-y compared to its 1HFY2023 revenue of RMB52.8 million. Its cost of sales also increased 18.9% y-o-y to RMB47.7 million in 1HFY2024.
Zhongxin Fruit recorded lower gross profit margin of 18.4% in 1HFY2024 compared to 24.0% in 1HFY2023 mainly due to higher procurement and production costs. This resulted in gross profit decreasing from approximately RMB12.6 million in 1HFY2023 to RMB10.7 million in 1HFY2024.
As at Dec 31, 2023, cash and cash equivalents stood at RMB2.8 million.
While the company continued to be profitable in 1HFY2024, it says sustaining the performance of the business remains challenging in the mid to long-term due to market demand fluctuations and unpredictable harvesting conditions.
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Shares in Zhongxin Fruit closed unchanged at 1.8 cents on Feb 2.
