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China dairy exporter Jatenergy — one of last year’s best performing ASX small caps — has reported low quarterly revenue as expected but also reduced its cash-burn rate.

Jatenergy was one of the best performing ASX stocks small caps early this year, winning ten-bagger status after it joined the infant formula export crew — propelling its shares from 2c as high as 29c.

But it’s since fallen back to 8c after one of its infant formula suppliers was placed into receivership.

Today Jatenergy reported slightly higher quarter-on-quarter cash receipts of $320,000 in the three months while burning $746,000.

That compares with $281,000 receipts last quarter and a burn-rate of $2 million.

In the first two quarters, however, Jatenergy banked $1.6 million cash and kept its burnrate to $480,000

The company (ASX:JAT) is working on developing an in-house product range including infant formula brands, as well as increasing online sales through JD Global and establishing a retail presence in China for both speciality shops and maternity wear.

Lower revenue was foreshadowed in the March quarter, because management was focusing “their efforts on putting in place the elements necessary to drive sales, particularly of in-house branded products”.

Jatenergy (ASX:JAT) share price, past 12 months.

Over the past few months the company has agreed to purchase a 51 per cent stake in China children’s products and formula business Sunnya.

It’s also done a deal with Shanghai Dragon Corporation for pop up specialty shops to be located within the brand’s 4,000 retail stores across China.

At the end of this quarter, the company had $4.1 million cash on hand and is planning on spending $1 million of this next quarter.

The business is up around 207 per cent since December, with the share price sitting at 8c this week.