Sino Grandness Food Industry Group Limited announced group earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company's revenue was RMB 1,014,466,000 against RMB 939,949,000 a year ago. Profit before income tax and changes in fair value of the option derivatives in relation to convertible bonds were RMB 196,282,000 against RMB 148,374,000 a year ago. Profit before income tax was RMB 196,282,000 against RMB 148,374,000 a year ago. Profit for the period attributable to equity holders of the parent was RMB 144,383,000 against RMB 105,054,000 a year ago. Net cash used in operating activities was RMB 120,779,000 against net cash generated from operating activities of RMB 30,236,000 a year ago. Acquisition of property, plant and equipment was RMB 172,557,000 against RMB 164,870,000 a year ago. Earnings per share based on a fully diluted basis were 14.7 cents against 13.6 cents a year ago. The increase in net profit for the Group in was due to higher sales from beverage and domestic canned products segments and higher other operating income.

For the six months, the company's revenue was RMB 1,742,553,000 against RMB 1,575,036,000 a year ago. Profit before income tax and changes in fair value of the option derivatives in relation to convertible bonds were RMB 271,956,000 against RMB 238,157,000 a year ago. Profit before income tax was RMB 271,956,000 against RMB 231,080,000 a year ago. Profit for the period attributable to equity holders of the parent was RMB 187,502,000 against RMB 157,840,000 a year ago. Net cash generated from operating activities was RMB 106,657,000 against net cash generated from operating activities of RMB 420,481,000 a year ago. Acquisition of property, plant and equipment was RMB 173,663,000 against RMB 164,901,000 a year ago. Earnings per share based on average number of ordinary shares and a fully diluted basis were 19.1 cents against 20.5 cents a year ago. The company's revenue increased by approximately RMB 167.5 million or 10.6%, the increase was attributable to the increase of RMB 178.1 million in sale of beverage and RMB 10.1 million from sales of canned products in domestic market, partially offset by a decrease of RMB 20.6 million from sales of canned products in overseas markets. The increase in sales revenue of beverage and canned products in domestic market from the half year 2017 to the half year 2018 was mainly due to steady expansion of distribution network in People's Republic of China. Profit before taxation increased by approximately RMB 40.9 million or 17.7%, the increase was mainly due to a increase in revenue and other operating income coupled with an increase in distribution and selling expenses and administrative expenses, partially offset by a decrease in finance costs and changes in fair value of the option derivatives in relation to convertible bonds.

As a result of rising disposable incomes, increasing health awareness and change in consumption pattern, consumers have shown increasing demand for convenient products and functional health food through online and offline spending. The Group has responded to this trend by steadily expanding its product range and distribution channel in order to appeal to a broader customer base in the China market. To capitalize on the growth opportunities ahead, the Group will continue to invest in various advertising and promotional activities as well as sales and marketing initiatives in order to enhance its brand visibility and grow its market share in China. Barring unforeseen circumstances, the group remains optimistic about its operating performance in the fiscal year 2018.