INTERIM profits at Chinese plush and flannel manufacturer Shanghai Haixin dropped 44.5 per cent to 24.4 million yuan (HK$22.7 million) for the six months to June.
The Shanghai-listed company blamed soaring synthetic fibre prices and the yuan's appreciation against the dollar for the decline in profit.
It said material costs had risen by 25 per cent and that 2.34 million yuan had been lost from the rising yuan.
Sales fell marginally to 126.76 million yuan, down from 133.3 million yuan a year ago.
The figures were compiled under Chinese accounting practices and were meant for domestic investors holding A shares.
Haixin's B shares stalled at the exchange yesterday, closing at 51.6 US cents with no trade.
Under Chinese rules, B-share companies are not obliged to produce financial reports using international accounting standards, although circulars to this effect have been issued by the China Securities Regulatory Commission.
