Business Digest

PUBLISHED : Tuesday, 25 April, 2006, 12:00am
UPDATED : Tuesday, 25 April, 2006, 12:00am

china shipping pays US$107m for vessel

China Shipping Development will buy a second-hand very large crude carrier (VLCC), built in 2001, for US$107 million from the Liberian-registered Formosa Discovery Marine Corp. It is expected to be delivered by May 20.

The deal comes after a previous bid to buy a VLCC, built last year, from Formosa, fell through earlier this year.

A broker said it was a bargain as newly built bulk carriers cost about US$125 million and were not available for delivery until 2009. The deal will be financed mainly through bank loans.

Meanwhile, high oil prices and declining freight rates continued to chip away at China Shipping's profit which recorded a drop of 12 per cent to 731 million yuan in the first quarter. Charlotte So

high coal and aluminium prices lift citic resources

Citic Resources Holdings posted a net profit of $221.7 million for last year, up from $4.77 million in 2004, as turnover rose 60.25 per cent to $5.78 billion.

The increase was due mainly to an 8.8-fold rise in the operating profit of its coal-producing business to $197.56 million and an 84.74 per cent rise in operating profit of its aluminium smelting operation to $173.38 million.

A spokeswoman said they were driven mainly by higher coal and aluminium prices. No final dividend was proposed. Eric Ng

anhui to invest in new highways and old roads

Hong Kong-listed Anhui Expressway has announced an increase in turnover to 1.49 billon yuan with 868 million yuan profit attributable to equity holders, an increase of 24.47 and 43 per cent respectively for last year.

The group will focus on new highway investment and maintenance of old roads this year with capital expenditure of about 1.5 billion yuan.

The group said with net cash 450 million yuan and cash flow from toll road revenue of 150 million yuan per month, there was adequate cash for capital expenditure. Kandy Wong

cheung kong plans for dreamcity approved

Cheung Kong (Holdings) plans to build five 57 to 61-storey commercial and residential blocks as part of phase one of Dreamcity in Tseung Kwan O.

The Buildings Department yesterday announced it had approved the building plan for the development last month.

MTR Corp awarded phase one and two of Dreamcity to Cheung Kong over the past two years.

The developer plans to build five 52 to 56-storey residential blocks above five podium levels in phase one, with a residential floor area of 1.47 million square feet and a commercial floor area of 87,877 square feet. Yvonne Liu

tingyi announces record profit of US$123.5m

Tingyi (Cayman Islands) Holdings announced yesterday net profit last year surged 8.16 times to a new record of US$123.52 million and declared a final dividend of 1.25 cents a share compared with 1.14 cents the previous year.

Turnover was US$1.84 billion, up 25.8 per cent, while gross profit rose 42.88 per cent to US$578.15 million. Profit margin increased to 31.33 per cent from 27.58 per cent.

'Although there are continuous price increases from flour, PET plastic resin and sugar, the group's performance was encouraging by the strategic direction of placing priority on improving profit and effective control from the group's management and marketing level,' it said. Charis Yau

sinoair reports slight increase in earnings

Sinotrans Air Transportation Development (Sinoair), the express shipment arm of Sinotrans which hold 70.36 per cent of the company, saw a 5 per cent increase in its profit, according to a quarterly report.

Net profit rose to 107 million yuan while its sales increased 23.6 per cent to 1.2 billion yuan in the period to last month.

Gross profit margin dropped 5 percentage points to 33 per cent over the year with its direct costs increasing 35 per cent to 800 million yuan over the year, mainly due to high rising fuel prices. Charlotte So

shimao to invest $232m in russian property project

Shimao International Holdings reported a full-year profit fall of 41.96 per cent to $109 million for the year to December on turnover of $13.98 million.

No final dividend was proposed.

The company said it entered into an agreement on April 15 to invest $232 million in a residential-hotel-retail-office and exhibition facility, Baltic Pearl project, in St Petersburg, Russia.

Upon completion of the agreements, the group will have a 33.35 per cent interest in the holding company of the Baltic Pearl project. Sandy Li



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