Luckily didn't touch this stock. Results not so positive.
Revenue flat, but net profit down 37%. Gross profit margin down 13.8 points -- pretty unusual weakening of business competitiveness.
Quoting from press release:
"The gross profit margin for our self-cultivation business segment decreased from approximately 40.6% in 3Q2012 to approximately 23.5% in 3Q2013 mainly due to the rising raw material cost of synthetic logs whereas the average selling price of edible fungi did not increase in tandem. Cost of synthetic logs had been on rising trend since year 2008 at a pace of approximately 10% year on year, whereas the average unit selling price of fresh shiitake mushroom are largely market driven."
