China Ouhua back in black in Q4, narrows full-year loss

PETALING JAYA: China Ouhua Winery Holdings Ltd has returned to the black, registering a net profit of RM2.38 million for the fourth quarter ended Dec 31, 2017 against a net loss of RM14.89 million in the previous corresponding period.

In a filing with Bursa Malaysia, the group said this was mainly attributed to a reduction in provision for bad debts, inventories impairment and marketing and distribution expenses.

Revenue for the quarter increased slightly by 0.2% to RM3.98 million, compared with RM3.97 million in the same period in 2016.

For the full year, its net loss narrowed to RM1.2 million, against RM23.2 million a year ago, while revenue was up by 2% to RM8.76 million, from RM8.6 million previously.

The group said the smaller loss was mainly due to the reduction in marketing and distribution expenses as well as administrative expenses.

Commenting on its prospects, China Ouhua said the group has confidence in its future, noting its business has improved and sales of wine have increased during the quarter under review mainly due to several China’s important festivals and the stock-up before the Spring Festival.

“We must find a way and a project that will revive the group. The group should be re-developed and strengthened if given more time,” it added.