Southern Packaging has issued a profit guidance for the 1HFY2022 ended June, expecting a net loss due to lower sales revenue and profit margin.

 

In a Singapore Exchange (SGX) filing on July 21, Southern Packaging says its sales were affected by the lockdown in Shanghai and surrounding areas due to the recent resurgence of the Covid-19 cases. &ldquo As a result, the group' s production and delivery plans were affected during the period.&rdquo

 

Meanwhile, its lower profit margin was due to an increase in purchase price of raw materials, labour costs and energy costs.

 

The group' s production and delivery plans to Shanghai and surrounding areas are &ldquo back to normal progressively&rdquo as the Covid-19 cases were under control in June, says Southern Packaging.

 

The company will announce its 1HFY2022 results on or before Aug 14.

 

See also: Southern Packaging Group shareholder and ex-Marco Polo chairman up respective stakes

 

Jen Shek Chuen, a substantial shareholder of Southern Packaging Group, recently added to his stake. On July 8, Jen paid $134,865 for 299,700 shares, or 45 cents each. This brings his total holdings in the China-based packaging manufacturer to just over 10.8 million shares, or 15.39%, from 14.96% earlier.

 

Just around a fortnight before, another substantial shareholder of the company was in the market &mdash but to sell. Berry Plastics Asia on June 23 sold 250,000 shares for $112,150.54, or 44.9 cents each. With this, it is left with 5,575,000 shares &mdash equivalent to 7.93% &mdash down from 8.28% previously.

 

Jen is listed as the third largest shareholder in Southern Packaging&rsquo s FY2021 annual report, as of March 15. The company&rsquo s co-founder, executive chairman and CEO Pan Shun Ming &mdash as indicated in the annual report &mdash holds 27.4 million shares, or equivalent to 38.94%. His wife Mai Shuying, the company&rsquo s co-founder and chief financial officer, is the second largest shareholder with 17.9 million shares or 25.49%.