Chinese infant formula maker Beingmate Baby & Child has released preliminary accounts showing a return to profit and said it will ask the Shenzhen Stock Exchange to cancel a delisting risk warning.
Beingmate, which is backed by New Zealand dairy giant Fonterra, said operating revenue fell 6.92 per cent to 2.47 billion yuan (NZ$541.79 million) in 2018 but net profit was up 104 per cent to 40.92 million yuan (NZ$8.97m).
The bottom line performance reverses consecutive losses in 2016 and 2017 of 780m yuan (NZ$171m) and 1.057b yuan (NZ$232m) respectively.
That prompted the stock exchange to mark the company as ST (special treatment), which carries a delisting warning and restricted trading while the company was also under increased supervision due to concerns about its financial reporting.
Commenting on the change in performance, Beingmate said it had reduced inefficient costs, improved production capacity and strengthened management of accounts receivable and inventories.