Agri-Industries to up capital spending

PUBLISHED : Thursday, 31 March, 2011, 12:00am
UPDATED : Thursday, 31 March, 2011, 12:00am

China Agri-Industries Holdings plans to increase its capital expenditure from HK$4.52 billion in 2010 to HK$7.147 billion this year. Most of the capital expenditure this year will be used to improve processing facilities, especially of rice and oilseeds products. The company yesterday reported a 13 per cent drop in net profit to HK$1.7 billion last year. Revenue increased 22 per cent to HK$53.5 billion. But overall gross profit margin narrowed from 7.4 per cent to 6 per cent because of an increase in raw material costs as a result of price fluctuations in agricultural commodities.