Tuesday, December 27, 2011

Xian Leng sinks deeper into red on RM52m impairment

KUALA LUMPUR (Dec 27): Fish breeder XIAN LENG HOLDINGS BHD [] sank deeper into the red in the third quarter ended Oct 31, 2011, reporting net losses of RM58.75 million compared with net profit of RM633,000 a year ago.

It said on Tuesday revenue declined to RM4.89 million from RM5.054 million a year ago mainly due to a drop in sales volume and the persistent aggressive price competition. Loss per share was 80.81sen compared with earnings per share of 0.87 sen.

'However, the group registered loss before tax of RM64.144 million as compared with a profit before tax of RM786,000 in the corresponding period last year mainly due to additional provision of impairment loss on property, plant and equipment amounting to RM63.29 million,' it said in the notes to the accounts.

Xian Leng said out of the RM63.29 million, a total of RM11.18 million was provided to one subsidiary involved in breeding tropical fishes, such as guppy, platy and cat fishes.

The RM52.11 million impairment loss was provided on the value of fish ponds of another subsidiary in the breeding of arowana fishes.

For the nine months, it posted net losses of RM61.57 million compared with losses of RM1.08 million in the previous corresponding period. Revenue was lower at RM12.16 million compared with RM15.42 million.

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