China Star Food - AR - FY2016 - Final

136 Pages·2016·3.51 MB·English

Leading the
Healthy Lifestyle
Annual Report 2016
This annual report has been prepared by the Company and its contents have been
reviewed by the Company’s sponsor, PrimePartners Corporate Finance Pte. Ltd.
(the “Sponsor”) for compliance with the Singapore Exchange Securities Trading
Limited (the “SGX-ST”) Listing Manual Section B: Rules of Catalist. The Sponsor
has not verified the contents of this annual report.
This annual report has not been examined or approved by the SGX-ST. The Sponsor
and the SGX-ST assume no responsibility for the contents of this annual report,
including the accuracy, completeness or correctness of any of the information,
statements or opinions made or reports contained in this annual report.
The contact person for the Sponsor is Mr Lance Tan, Director, Continuing
Sponsorship, at 16 Collyer Quay, #10-00 Income at Raffles, Singapore 049318,
telephone [phone].
Leading the
Healthy Lifestyle
China Star Food Group Limited
(formerly known as Brooke Asia Limited)
Annual Report 2016
Contents
02 Corporate Profile
04 Corporate Structure
05 Key Financial Highlights
08 Chairman’s Statement
13 Board of Directors
16 Key Management
17 Our Success in Listing on Catalist
20 Business and Financial Review
27 Awards and Accreditations
28 Quality Product Range
32 Corporate Information
02
Corporate Profile
China Star Food Group Limited (“CSFG”) and its subsidiaries
(the “Group”), is one of the leading manufacturers of
healthy snack food in People’s Republic of China (“PRC”).
The Group is primarily engaged in the production and sale
of sweet potato snack food products in the PRC, produced
from purple and orange-fleshed sweet potatoes.
The principal business operations of the Group are located in Liancheng
county of Fujian province and its sweet potato snack food products
are sold mainly through more than 300 distributors and wholesalers
who, in turn, distribute the sweet potato snack food products through
e-commerce portals and to supermarkets, petrol kiosks, convenience
stores and specialty stores throughout the PRC.
The Group operates three production facilities located in Liancheng
county, with the third production facility due to start production after
completion of the local government’s centralized waste water treatment
facilities by end of 2016. Occupying 13,910 sqm plot of land in the Food
Processing Zone of Liancheng Industrial Park, the new factory will add
another approximately 30,000 tonnes of production capacity to the
Group, which will bring up the annual total production capacity to
approximately 58,800 tonnes.
CSFG was listed on the Catalist board of Singapore Exchange via a reverse
takeover of Brooke Asia Limited on 22 September 2015.
Annual Report 2016
0033
China Star Food Group Limited
(formerly known as Brooke Asia Limited)
04
Corporate Structure
China Star Food Group Limited
100
%
China Star Food
Holdings Pte. Ltd.
100
%
Fujian Zixin
Biological Potato Co., Ltd.
100 100 100
% % %
Liancheng Dizhongbao
Fujian Zilaohu Fujian Xingpai
Modern Agriculture
Food Co., Ltd. Food Co., Ltd.
Development Co., Ltd.
Annual Report 2016
05
Key Financial Highlights
Financial Year End 31 March 2016
Revenue (RMB ‘000) Gross Profit (RMB ‘000)
RMB470.9 million RMB208.8 million
500,000 200,000 208,818
470,907
400,000 418,865 160,000 173,317
300,000 357,145 120,000 145,231
200,000 210,846 80,000 85,961
100,000 40,000
79,507 28,095
FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016
Profit Before Tax (RMB ‘000) Profit After Tax (RMB ‘000)
RMB46.1 million RMB16.3 million
120,000 124,745 100,000
107,904 93,429
96,000 80,000 80,566
72,000 60,000
(Note 1)
48,000 64,520 40,000 48,390
46,154 (Note 1)
24,000 20,000
19,054 14,294 16,303
FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016
Gross Profit Margin (%) Earnings Per Share (RMB Cents)
44.3% RMB7.37 cents
50 50
40 40.8 40.7 41.4 44.3 40 44.49
30 35.3 30 34.84
20 20
20.92 (Note 1)
10 10
6.20 7.37
FY2012 FY2013 FY2014 FY2015 FY2016 FY2012 FY2013 FY2014 FY2015 FY2016
Note 1: Lower Profit Before Tax, Profit After Tax and Earnings Per Share in FY2016 was due to one-off RTO expenses and impairment of goodwill.
China Star Food Group Limited
(formerly known as Brooke Asia Limited)
06
Annual Report 2016
07
Leading the
Healthy Diet
As people are becoming more health conscious, we play a part in
helping them achieve their desired healthy lifestyle. Our sweet potato
snacks are rich in nutrients, which allow guilt-free snacking. Hence,
we are able to lead the healthy choices in snack food among the
modern consumers.
Rich in complex
carbohydrates
Offer lowest Rich in
glycemic index dietary fibre
5 Health Benefits
of Sweet Potatoes
Possess anti-oxidant Rich in
properties vitamins A, B6 and C
(rich in beta carotene)
China Star Food Group Limited
(formerly known as Brooke Asia Limited)
08
Chairman’s Statement
The financial year ended 31 March 2016 (“FY2016”) ushered in a new
milestone for China Star Food Group Limited (the “Company’’) as it was listed
on Catalist of Singapore Exchange on 22 September 2015 via a reverse takeover
of Brooke Asia Limited.
New Star from Liancheng Anchored on sweet potato as our core ingredient,
Established since 2009, the Company and its we are propelled by the mission of spearheading
subsidiaries (the “Group’’) are engaged in the the culture of healthy living through embracing
production and sale of sweet potato snack food healthy diet and quality lifestyle.
products processed from purple and orange-
fleshed sweet potatoes across the People’s Backed by a listing in Singapore, we have
Republic of China (“PRC”). taken the first step of realising our ambitions to
expand internationally. We have chosen to list in
Based in Liancheng county of Fujian province, the Singapore because of its excellent reputation
Group sells its sweet potato snack food products as an international finance centre with attractive
to more than 300 distributors and wholesalers, infrastructure for fund raising and an international
who, in turn, distribute the sweet potato snack investor base.
food products, through e-commerce portals,
supermarkets, petrol kiosks, convenience stores
and specialty stores throughout the PRC.
Annual Report 2016