Fosun International (Hong Kong stock code 00656.HK), the parent of Fosun Group, listed in Hong Kong in July 2007. Fosun Group said it mainly invests in sectors that will significantly benefit from growth in China’s domestic demand, such as consumption, financial services, resources and energy, and manufacturing.
Zhaojin Mining slips on disappointing earnings
Shares of Zhaojin Mining Industry dropped 4.49 per cent to HK$30.85 yesterday after it posted a lower than expected 7.51 per cent rise in net profit for last year to 375.92 million yuan.
The company recorded revenue of 1.51 billion yuan (HK$1.66 billion), up 29.87 per cent from a year earlier.
The board decided on a cash dividend of 25 fen per share and one bonus share for every share held.
A UBS report last week forecast that the company would report 40per cent growth in net profit to 404 million yuan because of higher gold prices.
But the company said higher raw material costs, such as diesel fuel and chemicals for its newly acquired mines resulted in thinner profit margins.
Last year, the company completed 16 acquisition projects on the mainland with 920 million yuan.
Zhaojin Mining's gross margin dropped 3.52 percentage points last year to 50 per cent, while its net margin was down 5.17 percentage points at 24.86 per cent.
'We'll try every means to control costs this year and maintain high profitability,' said chief financial officer Zhang Banglong.
Setting aside negative factors, Zhaojin Mining chairman Lu Dongshang, said the company 'will continue to implement outward expansion and explore new projects'.
The company plans to invest 1.12 billion yuan this year to acquire mining and exploration rights in about 320 sq km of land, mainly in western China.
The area also has gold resources of 53 tonnes, and gold mine productivity of 3,750kg per year.
Mr Lu added that the company would keep an eye on domestic and overseas acquisition opportunities.
Zhaojin Mining's total output for this year is projected at 660,300 ounces, up from 622,600 ounces last year.
However, a Goldman Sachs report released yesterday after the company announced its results said Zhaojin was already trading at a rather high price-to-earnings ratio of 28, although the investment bank was bullish on the gold industry this year. The report retained its neutral rating on the company.
The mainland mining company posted a 7.51 per cent rise in profit to, in yuan 376m yuan