General Announcement for PLC
09/08/2019OTHERS LEONG HUP INTERNATIONAL BERHAD ("LHI" OR "COMPANY") - PROFIT GUIDANCE, 2nd QUARTERLY FINANCIAL PERFORMANCE FOR 2019 AND SHORT-TERM OUTLOOK
LEONG HUP INTERNATIONAL BERHAD |
Type | Announcement |
Subject | OTHERS |
Description | LEONG HUP INTERNATIONAL BERHAD ("LHI" OR "COMPANY") - PROFIT GUIDANCE, 2nd QUARTERLY FINANCIAL PERFORMANCE FOR 2019 AND SHORT-TERM OUTLOOK |
Pursuant to Paragraphs 9.03 and 9.08 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, LHI wishes to provide an update on certain preliminary operating data for the fiscal period up to 30 June 2019, i.e. 2nd quarter of 2019 (“2Q2019”). As disclosed in LHI’s Prospectus dated 25 April 2019, a number of factors affect the Company’s financial condition and results of operations which include, among others, the selling prices of LHI’s products sold on the open market. The Company wishes to inform its shareholders and potential investors that based on the preliminary review of the unaudited financial results of the Company and its subsidiaries (“Group”) for the financial period ended 30 June 2019, the Company expects the Group to record significantly lower profits after taxation for the 2Q2019 in comparison with the 2nd quarter of 2018 (“2Q2018”) due to a significant decline in the average selling prices (“ASP”) in most of the products sold by the Group, particularly in Malaysia, as follows:
As the Group’s operating costs are relatively stable, the weaker ASP in 2Q2019 will affect the Group’s margins and profitability. As at 5 August 2019, the market prices of broiler DOC and broiler chicken are RM2.00 per DOC and RM5.00 per kg respectively. The overall sales volume of the Group’s products increased in 2Q2019 compared to 2Q2018. The total sales volume of livestock feed, broiler DOC, broiler chicken and eggs increased in 2Q2019 by 13.9%, 8.1%, 10.7% and 5.9% to 583,665 metric tonnes, 123 million broiler DOC, 31 million broiler chickens and 430 million eggs, respectively, in comparison with 2Q2018. Despite the volume growth, the Group’s profits were affected as a result of the significant decrease in the ASP. Details of the Group’s financial performance for 2Q2019 will be available when the Company announces its unaudited consolidated financial results for the financial period ended 30 June 2019. The press release by the Company dated 9 August 2019 is attached. This announcement is dated 9 August 2019. |
Please refer attachment below.
Attachments
LHI_Press Release_20190809.pdf
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Announcement Info
Company Name | LEONG HUP INTERNATIONAL BERHAD |
Stock Name | LHI |
Date Announced | 09 Aug 2019 |
Category | General Announcement for PLC |
Reference Number | GA1-08082019-00044 |