Zixin Group recovers with $2.48m profit in FY 2024

It reversed its losses from FY 2023.

Catalist-listed Zixin Group reported a $2.48m (RMB13.35m) net profit in fiscal year 2024 (FY 2024), reversing its net losses a year ago.

In a bourse filing, the sweet potato food manufacturer associated the gain with the increased volume of fresh and processed sweet potato products produced and sold.

Improved economies of scale, the ability to maintain average selling prices for its high-quality fresh and processed sweet potato products, and China’s gradual economic recovery post-COVID-19 also helped the company boost its financial performance.

The group’s FY 2024 revenue also rose, increasing 45% YoY to $59.35m (RMB318.45m).

Meanwhile, the company expressed plans to raise funds to expand into high-tech manufacturing, enhance research capabilities, and increase the size of the contracted farmland for sweet potato cultivation and supplies in China.

It will use the funds for activities and expansion of business and operations in Singapore.

Zixin will raise funds through rights-cum-warrants issue of up to 144,481,810 rights shares at $0.0165 apiece, with up to 577,927,240 warrants. 

The company expects to raise net proceeds of up to $2.1m from the issue and additional gross proceeds of $26m if the warrants are fully exercised.

RMB1= S$0.18