Sunzen Biotech Bhd, which last week announced its second quarter results for the financial year ending 31 December 2017 (“Q2FYE2017”), achieved an outstanding growth in Revenue and Profit After Tax (“PAT”) compared to the same period in FY2016.
The significant improvement in financial performance can be attributed to the Group’s trading of crude palm oil, palm kernel and palm kernel shell that commenced since Q1FYE2017. The Group also successfully implemented measures to improve operational efficiency as lower operating expenses was incurred in the current quarter.
In addition, the Group continues to enhance its core business as a turnkey animal healthcare solutions provider through marketing, developing and manufacturing of animal health products which has consistently contribute to both its trading and manufacturing division.
As at 31 March 2017, Sunzen’s balance sheet remained robust with a current ratio of 4.1x and a net-cash position of RM52.6 million.
Sunzen’s Chief Executive Officer, Hong Choon Hau said, “We are pleased that the repositioning and restructuring plans for the Group remains progressive as demonstrated from our positive results. This marks the third consecutive profitable quarter and we are working hard to continue this streak. Moving forward, we expect to further improve on our successes as we continue to create value for shareholders and stakeholders alike.”
FINANCIAL RESULTS
2nd Quarter vs Corresponding Quarter Last Year:
1HFYE2017 vs 1HFYE2016:
NEW BUSINESS VENTURES
On 7 July 2017, the Group has entered into a share sale agreement with Chum Mun Cuan and Lim Poh Chuw to acquire 70% equity interest (5,250,000 ordinary shares) in Ecolite for a purchase consideration of RM12,050,360 to be fully satisfied by allotment and issuance of 37,657,375 Sunzen Shares at an issue price of RM0.32 per share.
Ecolite involves in the manufacturing and trading of traditional Chinese medicines and herbal health foods and beverages.
On 14 July 2017, a new joint venture company, Sunzen Agritechnology (Northern) Sdn. Bhd. was incorporated with an issued capital of 100 ordinary shares of RM1.00 each, of which 51% of equity is held by Sunzen Feedtech Sdn. Bhd. while the remaining 49% shareholding is owned by Arah Kawasan Sdn. Bhd. The main business activity of the newly incorporated entity is manufacturing and trading of biomass material and fertilizers.