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China Essence could be placed on watch-list by SGX

Mainboard-listed China Essence has warned that it could be placed on the watch-list by the Singapore Exchange, after the producer of potato products booked a group net loss of 431.6 million yuan for the last financial year ended on March 31.

SINGAPORE: Mainboard-listed China Essence has warned that it could be placed on the watch-list by the Singapore Exchange, after the producer of potato products booked a group net loss of 431.6 million yuan for the last financial year ended on March 31.

Group revenue fell by 88.6 per cent to 45.1 million yuan, hurt by a sharp decline in sales volume of potato starch.

China Essence said it has now recorded pre-tax losses for three years in a row. It also noted that its market capitalisation as of 30 May 2014 was S$6.2 million.

Under SGX Listing rules, a company can be placed on the watch-list if it reports pre-tax losses for the three most recently completed consecutive financial years, and has an average daily market capitalisation of less than S$40 million over the last 120 market days on which trading was not suspended or halted.

SGX conducts reviews to identify companies to be included on the watch-list.

Its next review is expected to take place on the first trading day of June. 

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