By NZPA
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Wednesday 19th June 2002 |
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Chairman Alastair MacCormick told shareholders at the company's annual meeting that earnings before interest and tax for the first five months of the current financial year stood at $7.5 million.
"The overall result is ahead of the same period last year and forecasts for the balance of the year show the firm to be tracking in line with our budget for a profitable year," Dr MacCormick said.
Richina recorded a loss of $15.3 million in the year to December 2001. The poor result was blamed on tough trading conditions and a hefty writedown of its Beijing Blue Zoo aquarium investment.
Dr MacCormick said all three Richina subsidiaries -- Shanghai Richina Leather (SRL), Blue Zoo Beijing and New Zealand construction company Mainzeal -- should generate operating profits this year.
SRL, which is undergoing strong growth and is now one of the largest tanneries in China, is likely to be the standout performer, he said.
Full year projections for the tanning division are for sales to climb 35 percent on the previous year to $US106 million ($NZ220 million). Sales are picked to grow to $US200 million over the next three years.
Mainzeal is experiencing a "solid programme and its order book was being maintained", and Blue Zoo is "returning to profitability", Dr MacCormick said.
Richina is in the midst of switching its focus towards its Chinese operations.
Possible changes resulting from this process include:
* funding growth in China through seeking access to equity capital markets outside New Zealand;
* corporate restructuring in China that might involve the conversion of SRL from a joint venture into a "company limited by shares" or the acquisition of a China investment holding company;
* giving serious consideration to participating in opportunities that complemented existing businesses in China;
* dual reporting of the company's performance in New Zealand and United States dollars, making the company's reporting more relevant to international investors.
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