Challenging 4Q08~FY09 : China Sun previously cautioned that the Group expects net loss to be reported for 4Q08, mainly attributable to the global economic downturn which has affected the local demand of fast moving consumer goods that used corn starch as raw material. This has resulted in lower selling price and gross margin for corn starch sales despite corn kernels price started to decrease in 4Q08. In addition, losses continued to accumulate from start up phases of the Group's two new businesses involving the production of corn starch at Tieling Wanshunda Starch Co., Ltd., and ethanol at Sky Bright (Shenyang) Ethanol Co., Ltd. The losses were due to lower than expected average utilization rates at the 2 plants in 4Q08, which resulted in higher unit fixed cost allocation. The selling price of ethanol was further hit by the significant decrease in oil price which caused less demand from customers who used ethanol as raw material to produce certain chemicals for industrial uses.
Extension of time for FY08's results : Subject to the approval of the FY08 extension being granted by the SGX-ST, the Group plans to announce its full year financial results for FY08 no later than March 31, 2009. China Sun announced over the weekend that the Group requires more time to obtain relevant information in relation to certain transactions and assets before they are able to finalize its audited financial statements for FY08.
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