NutryFarm International reported Tuesday its fiscal second quarter swung to a net loss of HK$3.91 million from a year-ago net profit of HK$457,000 amid higher administrative expenses.
Revenue for the three months ended 31 March dropped 66 percent on-year to HK$13.96 million, driven by subsidiary, Nutryfarm (Chengdu) Biomedicine, or NFC, via its nutrition business, the company said in a filing to SGX.
In the year-ago quarter, revenue was higher due to the durian trading business just starting via subsidiary Global Agricapital Holding (GAH), the filing said. For the fiscal second quarter in 2021, the company recognised revenue from GAH’s durian trading business, but the current results were prepared by removing all the Thai durian transactions operated and overseen by former CEO Cheng Ming as they can’t be verified or substantiated, NutryFarm said.
Administrative expenses increased 44 percent on-year to HK$5.56 million in the fiscal second quarter on higher salaries and higher legal and professional fees, the filing said.
For the fiscal first half, NutryFarm reported its net loss widened to HK$11.71 million from a net loss of HK$501,000 in the year-ago period. Revenue for the six months ended 31 March dropped 40 percent on-year to HK$33.22 million, the company said.
With regard to the appropriateness of preparing the financial statements on a going concern basis, NutryFarm noted it has secured commitments for S$21 million of its planned issuance of up to S$25 million of convertible bonds, and it is confident of placing the remainder.
If shareholders and SGX approve the bond issuance, “the company will have adequate funds to repay all the loans taken from Corpbond,” which had filed an application to place NutryFarm under judicial management, the company said.