record profits flow but guangdong investment tightens tap for chief
What's going on at Guangdong Investment, the one-time darling of investors during red-chip fever that has experienced something of a profits roller-coaster ride in the past decade?
Last year, the window company of the Guangdong government reported 45 per cent growth in earnings to a record $1.3 billion thanks to the parent's injection of its water distribution business which includes the sale of water to Hong Kong.
But surprisingly, chairman Li Wenyue took a hefty 58 per cent cut in his pay to $1.13 million. Has the man done something wrong?
We put the question to chairman Li at yesterday's annual meeting. Not at all, he said, pointing out that he actually spent more time with the parent company, Guangdong Yue Gang Investment Holdings, last year.
'I have great confidence that Guangzhou investment will get better year by year,' said Mr Li. 'But I am not sure whether this will be reflected in my pay.'