Business Digest

PUBLISHED : Monday, 27 March, 2006, 12:00am
UPDATED : Monday, 27 March, 2006, 12:00am


Sinopec Shanghai Petrochemical, the petrochemical subsidiary of A share Sinopec Corp, said last year's net profit dropped 53.4 per cent to 1.85 billion yuan from 3.97 billion yuan a year earlier.

It said higher international crude oil prices caused a 'distorted correlation between prices' that resulted in heavy losses for its oil refining business.

The firm processed 9.49 million tonnes of crude oil last year, up 0.38 million tonnes from a year ago, with crude oil costs accounting for 69 per cent of its annual sales, or 29.58 billion yuan.

Turnover rose 16.63 per cent to 45.96 billion yuan from 39.4 billion yuan a year earlier. Earnings per share dropped to 26 fen from 55 fen.

The results were also dampened by a loss from its investment in an ethylene project in Shanghai due to a one-off amortisation of start-up expenses.

Georgina Lee


Brokerage and asset management firm Rexcapital Financial is to place up to 1.2 billion shares to institutional investors at 20 cents each to raise $235 million for branching into China's welfare lottery equipment sector.

The company said about $153 million of the proceeds would be used to buy lottery system developer and machine maker Citic Media (HK). The rest of the money will be used as working capital.

The top-up placement represents 28.57 per cent of its enlarged share capital. The placing price is an 8.26 per cent discount to the last closing price of 21.8 cents. Georgina Lee


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