YAOHAN International Holdings' associate companies have reported flat results for the six months to September 30. Yaohan Food Processing & Trading Co, owned 58.26 per cent by Yaohan International, made profits of $22.58 million, compared with $17.31 million in the corresponding period last year. Yaohan Hongkong Corp, which is 41.95 per cent-owned, netted profits of $14.49 million against $16.74 million previously. And Yaohan International Caterers, owned 51.96 per cent, turned in a profit of $40.13 million compared with $39.3 million a year earlier. Yaohan Caterers had turnover of $486.36 million against $427.47 million previously, a jump of 13.8 per cent. Yaohan Food showed turnover up 36.1 per cent to $480.34 million from $352.89 million a year earlier. At Yaohan Hongkong, turnover rose 15.4 per cent to $1.62 billion from $1.41 billion. The six months had been a 'difficult period for all retailers in Hong Kong', said Yuji Sakuma, managing director of Yaohan Hongkong. He was forced to make an exceptional allowance of $4.16 million after it was decided not to refurbish and renew two floors of the Sha Tin department store. He said the firm's 10-year lease on the store ended in September. The firm has only renewed the lease on half the floors it held before. Earnings per share were four cents, and a dividend of four cents a share was declared. Yaohan Food reported that production of ham at its Shenzhen plant reached 80 per cent of capacity during the period. It said high inflation in China caused the price of raw materials to rise. 'We made several price adjustments for our ham products to partially offset the increase,' said chief executive Wilson Wong Shun-yiu. 'The factory has started to make contribution to the group.' Frozen food trading remained the core of the firm's business, he said. Mr Wong added that consumption was rising in China and Hong Kong. A dividend of 2.8 cents a share will be paid. Earnings per share were 9.04 cents. Yaohan Caterers said operating conditions remained difficult. 'Growth was primarily attributable to the opening of new outlets,' said managing director Glenn Chan Wai-cheung. He said flooding in China had squeezed supplies and raised prices while consumers were spending less, causing 'strong resistance to any price increase'. Earnings per share were 13.38 cents and dividends were set at 4.5 cents a share.