Investors RelationsDelivering nature's goodness to everyone.
Extracted from Annual Report 2017/18
On behalf of the Board of Directors (the Board), I am pleased to present SunMoon Food Company Ltd's (SunMoon) annual report for the 12 months ended 31 March 2018 (FY2017/18).
In FY2017/18, the Group reported a positive set of results, with revenues of S$44.8 million and net profit of S$0.3 million excluding fair value gain of S$1.3 million on financial liabilities arising from contingent issuance of shares.
Profitability improved in FY2017/18, from a net loss of S$9.3 million in FY2016/17. This included the gain on disposal of subsidiaries of S$3.5 million in FY2017/18 post restatement, as the Group had previously accounted for the disposals in FY2016/17.
This is testament to our asset-light, consumer-centric strategy; as well as our continued focus on branding and the application of technology to enhance the Network x Geography x Product (N x G x P) business model.
FY2017/18 revenues grew by 123% from S$20.1 million for the 15 months ended 31 March 2017, lifted by an increase in China sales via Shanghai YiGuo E-commerce Co. Ltd (YiGuo). YiGuo is China's largest business-toconsumer (B2C) fresh produce online retailer and also SunMoon's major shareholder since July 2017.
The Group's financial position has strengthened with positive equity of S$14.9 million and cash of S$11.4 million as at 31 March 2018.
In FY2017/18, SunMoon continued to grow the N x G x P model, by expanding its network, geographic footprint and product range. Our first chartered flight of avocados from Mexico to China landed with 30 tonnes of the fruit on 26 April 2018. We have also started the sale of packaged, ready-to-drink whole young Thai coconuts to Singapore and are working on increasing our Thai coconut supply to the US, Australia and Europe.
To date, SunMoon has 315 products in six countries, ranging from fresh fruits such as apples, pears, and seasonal fruits such as cherries, grapes and pomegranates; to consumer products such as fruit cups, juices, snacks and frozen durians. Our network now stands at over 15,000 points of sales globally.
During the year, SunMoon worked closely with Alibaba backed-YiGuo to leverage on their network to expand into China. SunMoon's sales to YiGuo for the period July 2017 to March 2018 made up 64% of our revenue for FY2017/18. SunMoon was recognised as a "Well-Known Brand" and received the Best Partner Award under the TMall Fresh category during the TMall 2018 Chinese Dining Table Celebration. The awards are a recognition of SunMoon's close cooperation with TMall and YiGuo. TMall is China's largest B2C online platform operated by Alibaba.
We remained focused on the use of technology to differentiate us from the rest, and to grow the business. Last year, we deployed the NetSuite Enterprise Resource Planning (ERP) system, a cloud software, which allows us to operate seamlessly across our subsidiaries in Singapore and China. The system enables product traceability and shipment details, which enhances our operational efficiency.
Looking ahead, SunMoon will continue its transformation to become an asset-light, consumer-centric and technology-driven company. We will do this by tapping into new technologies such as blockchain and artificial intelligence to enhance our operational efficiency, spur growth into new areas, and reinvent the way business is done.
On behalf of the Board, I would like to take this opportunity to thank all stakeholders who have contributed to the success of SunMoon over the years.
In line with good corporate governance practice, the Board has undergone a renewal process. I would like to welcome: Mr James Prideaux, who joined us as non-executive Chairman, Ms Liu Yuanyuan and Ms Wang Ai as Non-Independent and Non-Executive directors, Mr Yang Guang and Ms Ng Bie Tjin @Djuniarti Intan as Independent and Non-Executive directors. The five bring with them extensive international business experience that are invaluable to SunMoon, especially for our next phase of growth.
I would also like to express our gratitude to past directors for their contributions – Dr Tan Eng Liang, Mr Chee Wai Pong, Mrs Jessie Peh and Mr Shum Ka Shat. Their foresight and faith in SunMoon helped navigate the Company through some tough times.
Today, SunMoon is on a better footing, having established itself as a global distributor and marketeer of branded fresh fruits, vegetables and consumer products. Together, we will strive to bring the company to greater heights and become the "Dole of Asia".
Mr Gary Loh
Chief Executive Officer and