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BDO Limited, the auditor of China Kangda Food Company, has raised concerns regarding the group’s ability to continue as a going concern basis as its current liabilities exceed its assets by RMB100.8 million ($19.4 million) as at 31 December 2010.
yet another one... on going concern (not accounting irregularities)
Published February 10, 2011 
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China Kangda issues profit warning It sees drop in 2010 full-year net on oversupply of chicken meat products in China mkt
THE Year of the Rabbit has not started well for SGX's only bunny play. China Kangda Food Company, one of China's leading rabbit meat exporters to Europe and Russia, yesterday issued a profit warning.
It is expecting a significant drop in 2010 full-year net profit due to a continued oversupply of not rabbit but chicken meat products in China's competitive domestic market.
The company, which is also listed on the Hong Kong Stock Exchange, yesterday said that the expected decline also stems from higher labour and raw materials costs in China squeezing its profit margins for the year ended Dec 31, 2010. This will mean a second straight year of lower full-year net profit.
The company added though that fourth-quarter revenue was likely to grow thanks to recovering demand for its products both overseas and in China, as well as positive contributions from subsidiaries in the second half of 2010.
China Kangda has not had a good financial year. In its latest reported results for the third quarter ended Sept 30, 2010, China Kangda posted a 40 per cent jump in revenue to 263.8 million yuan (S$51.3 million) but net profit still plunged 60 per cent to 4.98 million yuan. This followed large falls in net profit in the first and second quarters of FY10, despite rising revenue in both quarters too.
Last August, the company announced that it had breached certain loan covenants and that the lenders had demanded early repayment of the balance on syndicated loan amounts of HK$23.6 million (S$3.9 million) and HK$31.5 million.
It then said in October that one of its subsidiaries had secured a term loan facility of 100 million yuan for one year from a bank in the PRC, part of which would be used to repay the outstanding balance of those syndicated loans.
China Kangda yesterday advised shareholders and potential investors to exercise caution in dealing in its shares, which closed half a cent higher at 11 cents yesterday, before the release of its profit warning. |
knightrider ( Date: 10-Feb-2011 10:15) Posted:
Yeh, every year issue 1 time profit warning, like the AGM, ha ha ha LOL !!! |
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Yeh, every year issue 1 time profit warning, like the AGM, ha ha ha LOL !!!
China Kangda Food Company issues profit warning
China Kangda Food Company says it expects the group to report lower unaudited net profit for the nine months ended 30 September 2009 compared to the corresponding period last year.
China Kangda Food extended recent weakness on lack of positive newsflow. While food processing firm has just unveiled intention for a dual listing in Hong Kong to raise funds for business expansion, investor interest crimped by lack of details, although appetite should return once exercise finalized. "I think more or less it will have some positive impact on the shares because Hong Kong-listed companies normally are higher valued than Singapore-listed companies. So if you do a double listing, the share price in Singapore might be positively affected," says local house analyst; expects business expansion plans to be "quite aggressive" considering existing cash flow "is quite healthy now."
A summary for today.
A summary for today.
A summary for today.
A summary for today.
actually after reading AGM q&a, i feel more confident about this company.
see
http://www.nextinsight.com.sg/content/view/332/60/ for what the CFO had to say about share buyback starting June 08.
Got bear meat? Just kidding.
Haha... so many bad news... i guess only 1 way... SHORT!!! Keke...
right rabbit ,chicken or pork? Also ask yrself why bother whether the Olympics will push up demand for kangda's products...all these are analysts' way to push up the counter but no use now
Ask yourself this question ?
Do you eat rabbit meat or chicken or pork ?
Avoid S stock for the time being..sold off this stock on first day of trading at 66cts and after that all the way downhill once it dropped below 50cts..like Hengxin and chinaprecision shot up to high $1.08 and $0.55cts and after that all the way downhill...looks like many are played up to pluck local investors money..trade with care...many . eg ChinaYuanbang,CE,Sino_environ,synear,etc even the favourites Cosco and Yangzijiang were whacked down..very risky for china play
Anyone wants to comment on this stock? Seems like trading at the lower bollingerband and it looks bearish..
What is the next support level?? Think i going to sell before it plunges down..
$0.45...where did u derive this price?
Watch out this counter.......target to reach $0.45 this week
oic.. tks cyjjerry.. then tat's ok to me lor.. heehee..
it may not be the news u posted a bad one...but the resignation of the CFO and Company Secretary
