CP Pokphand posts HK$10 mln 2001 loss
HONG KONG, March 27 (Reuters) - China-based agribusiness company C.P. Pokphand Co Ltd on Wednesday announced much smaller losses for 2001, but the feed and chicken meat producer was hit by bans on its chicken exports and high finance charges.
The company posted a net loss of US$10.3 million for the year ended December 31, 2001, well down from its US$51.15 million loss in the previous year but showed a strong improvement in operating profit to US$57.31 million, compared with US$16.34 million in 2000.
But punishing finance costs of US$59.22 million and its share of losses in associate companies of US$2.23 million helped pull the results into the red.
Turnover rose by 2.2 percent to US$1.45 billion during the period.
The company, which expanded aggressively in China in the 1980s and early 1990s, setting up more than 30 feedmills, chicken farms and other agribusiness operations, was hit with rising costs, stiff competition and high debt charges.
It is currently working out its debts with its creditors.
The company reported gains of US$26.44 million on the disposal of interests in associates during the year. A portion of this is attributed to gains on the sale of shares in its associate Shanghai Dajiang (Group) Stock Co Ltd.
The company said in December that it had reduced its stake in Shanghai Dajiang to 37.9 percent from 41.0 percent.
Shanghai Dajiang is one of the chief operating units of the CP group in China and its B shares are listed on the Shanghai Stock Exchange. They may only be held by foreign investors.
The share sale resulted in net profit of US$12.12 which would be used to reduce debt, the company said.
The company said it would dispose of its remaining stake in Shanghai Dajiang B shares on the market "when appropriate" which would lead to an estimated profit of US$147.62 million.
Shanghai Dajiang has yet to announce its 2001 results. The company said in January that it would make a net loss in 2001 due to thinner margins and bans on Chinese chicken imports by Japan and South Korea last year.
The Shanghai company reported a net loss of 10.67 million yuan for 2000, based on international accounting standards.
CP Pokphand, which is listed on the Hong Kong stock exchange, closed 0.74 percent lower at HK$0.135 on Wednesday.
Shanghai Dajiang closed US$0.012 higher at US$0.607.
(US$1-8.277 yuan) |
