Business Digest

PUBLISHED : Monday, 04 September, 2006, 12:00am
UPDATED : Monday, 04 September, 2006, 12:00am

shenzhen international net profits drop 3.6pc

Shenzhen International Holdings, which operates toll roads and logistics services, saw net profit drop 3.6 per cent to HK$128.18 million in the six months to June 30.

The figure included a HK$17.88 million write-back of provisions for bad and doubtful debts. Without the non-recurring item, the latest first-half profit grew 12 per cent.

Turnover soared 31 per cent to HK$673.02 million thanks largely to 39 per cent growth in the contribution from logistics units.

Basic earnings per share were 3.44 per cent lower at 1.12 HK cents. No interim dividend was proposed.

The group's toll road units, including 45 per cent-owned Wuhuang Expressway and 30.42 per cent-owned Shenzhen Expressway, did well with Wuhuang's profit contribution up 33 per cent to HK$26.30 million and Shenzhen Expressway's rising 25 per cent to HK$77.08 million.

Shenzhen International's 66.67 per cent-owned logistics subsidiary, South-China Logistics, was turned around with a profit of HK$3 million on turnover of HK$20.16 million due to strong demand for unloaded-container depot services.Denise Tsang

Sino Biopharmaceutical invests in coal refining

Medicine maker Sino Biopharmaceutical is to move into coal refining by investing 752 million yuan in a joint venture in Shaanxi.

The group agreed to take up the largest shareholding, 43 per cent, in the joint venture called Shaanxi Xinxing Energy Chemical Industry, with the rest to be owned by three Shaanxi-based investors.

The project, which involves an investment of five billion yuan, is planned to start operations in the first quarter of next year in Yulin and convert coal into carbinol, then into low-carbon olefins such as ethylene and propylene.

Sino Biopharmaceutical expects to fund its part of the investment internally.

The company's shares, which last traded at HK$1.40 before being suspended last Thursday, are to resume trading today. Denise Tsang

hembly forms fashion venture with benetton

Apparel distributor Hembly International Holdings has agreed to form a 50-50 joint-venture with Benetton Asia Pacific, which will produce, distribute and market the Italian brand's fashion and accessories around China.

The pair plan to open 150 outlets nationwide in the next five years distributing Sisley men's and women's wear and accessories. Denise Tsang

nam tai electronic issues warning on earnings

New York-listed consumer electronics maker Nam Tai Electronic and Electrical Products has warned of 'a significant decline' in gross profit and net profit in the three months to the end of September as a result of its competitive pricing policy and rising oil prices and material and labour costs. Denise Tsang