KUALA LUMPUR: Bahvest Resources Bhd posted net losses of RM174.52mil in the fourth quarter ended March 31,2020 compared with net profit of RM8.77mil a year ago, weighed down by fair value loss on its biological assets.
Bahvest, which is involved in mining and aquaculture, reported on Tuesday its revenue fell by 39.5% to RM19.56mil from RM31.82mil a year ago. Loss per share was 14.25 sen compared with earnings per share of 0.72 sen.
Bahvest said the fourth quarter was impacted by a fair value loss of RM151.73mil on biological assets compared with just RM2.05mil year ago.
For the financial year, Bahvest posted a net loss of RM171.15mil, battered by the fourth quarter losses, compared with net profit of RM5.70mil in the previous financial year.
However, its revenue increased by 46.2% to RM95.13mil from RM65.05mil.
Commenting on its 4Q results, its said the aquaculture operations recorded revenue of RM330,00 and gross loss of RM8.21mil. This was a decline of 93.35% and 955.94% respectively as compared to a year ago where its revenue and gross profit were RM4.96mil and RM960,00 respectively.
“The substantial decrease of 93.35% in revenue for the current quarter as compared to the corresponding period in 2019 was due to the stoppage of sales to Hong Kong and China during the period under review due to the Covid-19 pandemic which escalated in China and Hong Kong in early January 2020.
“The Movement Control Order (MCO) imposed by Malaysian Government from March 18 also affected the group’s sales of frozen products in local market in 4Q, ” it said.
Bahvest said the decrease in revenue recorded in 4Q coupled with the negative movement in fair value of the group’s fishery stock had resulted in a gross loss RM8.21mil for its aquaculture division during the period under review.
Due to the challenges of the Covid-19 pandemic and its impact on global economy, in particular on the economy of Hong Kong and China, the group projected a significant drop in the sales of its aquaculture products, in particular to Hong Kong and China for the next 12 months to March 31,2021 pursuant to MFRS 141.
Bahvest said the significant drop in projected sales has resulted in a negative movement in fair value of the group’s fishery stock of RM151.55mil for the just ended quarter.
Thenegative movement in fair value of RM151.55mil was set-off against the group’s profit for the year and does not have any impact on the group’s cash flow.
As for the mining operations, Bahvest said they recorded revenue and gross profit of RM19.23mil and RM3.04mil.
Sales revenue of RM19.23mil represented about 90.46 kgs of net gold and 5.57 kgs of silver sold during the quarter under review.
However, its revenue and gross profit in 4Q decreased to RM19.23mil and RM3.04mil respectively as compared to RM24.70mil and gross profit of RM6.37mil recorded in the quarter ended Dec 31,2019.
This was a decrease of 22.13% and 52.20% respectively which was is in line with the reduction in production of net gold of 90.46 kgs as compared to 3Q of 123.96 kgs, mainly due to the MCO.
“The group’s mining and processing activities for the production of gold dore bars have been suspended from March 18,2020 till end of the quarter under review pursuant to the MCO, ” it explained.
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