Chengdu Telecom realises 5.7pc rise in profits
H share Chengdu Telecommunications Cable Co said its interim profit rose 5.7 per cent to 1.72 million yuan (about HK$1.59 million) despite an 11.38 per cent fall in turnover to 284 million yuan.
The company recorded operating profit of 15.4 million yuan.
Earnings per share were 0.43 fen compared with 0.41 fen a year before. No interim dividend will be recommended.
It said the joint ventures under the company suffered a loss of 8.1 million yuan in the first six months of the year.
A total of 7.59 million yuan of this loss was derived from Siemens Optical Fibre Cables.
The company said sales of all-plastic city telephone cables decreased 15 per cent and telephone-exchange system cables fell 49 per cent in the six months compared with the same period of last year.
But sales of cable-joining sleeves increased 32.8 per cent in the period.
The company was optimistic about its performance in the latter part of this year because China's telecommunication industry would continue to develop and the demand of telecommunication cables would continue to increase.
The company said that China would speed up the construction of a major project of optical-fibre manufacturing facilities and many such projects would be put up for tender later this year.