The decline in earnings was mainly due to a one-time loss of RM 2m during this quarter.

If taking away the one-time loss of RM 2m, LayHong actual earning is RM 3.1m. Regardless, earnings are still down nearly 20%

The decline in profits is due to higher operating costs, such as transportation, advertising and promotional expenses

According to the quarterly report, management revealed that egg production at Sabah's farm will return to normal. The challenges facing Johor's new liquid egg plant have been resolved and the plant is now ready for commercial production. Estimated turnover of about RM 2.1m per month.

As for a 49% joint venture with Japan's NH Foods Ltd., the company's plan is proceeding smoothly as planned and will soon to be in towards commercial production.

In additonal, LayHong has only 49% equity, so the turnover of the joint venture company will not be entry to LayHong's account, but will show a line of "share of profit of JV"

About 15% of the eggs exported by LayHong are sold to Singapore. HongKong is relatively small. As for China, LayHong is unable to compete with local suppliers, so it does not export to China.

The Klang Valley market is saturated, so management will begin to expand markets on the East Coast, such as Kuantan. LayHong will also launch new products, with the lower price, as the company awaiting for the market response on the new product.

In addition, the company will gradually no longer deal with dealers, because this will lower down their profits. LayHong will be focusing on the products to sell directly to customers. This plan will be in plan to complete within 6 months.