Khong Guan's net profit sinks 95.3% to $58,000

Weakening Ringgit and a reduction in sales hurt its earnings.

Singapore-listed biscuit maker and seller Khong Guan Flour Milling Ltd. has suffered low earnings for the FY 2016 as sales of short-term investments fall.

According to the group's financial report, its net profit has plummeted at a whopping 95.3% rate, bringing last year's $1.24 million earnings to just a measly $58,000.

Despite its subsidiaries in Malaysia making modest improvement, turnovers reflect declines due to weak local currency.

"The group turnover showed a decrease from S$62,036,000 to S$58,708,000 due mainly to the weakening Ringgit and a reduction in sales of short-term
investments," the group said.

The overall topline dipped 5.4%, with the group's revenue decreasing from $62 million to $58.7 million.