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Christine Chan

INTERIM reports posted by B-share companies continue to rock investor confidence in a mainland economy still reeling from a credit crunch.

  Shanghai Erfangji - also known as Shanghai Number Two Textile Machinery - said first-half earnings tumbled 67 per cent to 19.47 million yuan (about HK$18.12 million) on dwindling sales of synthetic-fibre spinning machines, one of its major products.

  Its other major product is natural-fibre spinning machines.

  Sales dropped 38.2 per cent to 192.51 million yuan in the first half to June 30, from 311.99 million yuan.

  Earnings per share were 4.6 fen.

  All the earnings figures were compiled using Chinese general accounting practices and were unaudited.

  A company spokesman said it produced about three to four synthetic-fibre spinning machines in the first half, against 14 a year earlier.

   Shanghai Erfanji had a production output of 1,000 natural-fibre spinning machines in the first half with orders for 1,600 for the second half, against that of 1,600 in the whole of 1994.

  Synthetic-fibre spinning-machine manufacture is more profitable than natural-fibre spinning machines and declining sales have eaten deeply into earnings.

  Record chemical prices have forced many synthetic-fibre makers to shut down, causing a weaker demand for synthetic-fibre spinning machines.

  The spokesman said that the company had 200 million yuan in accounts receivable - money owed for goods delivered - so far this year.

  The company trades A and B shares on the Shanghai Stock Exchange.

  Shanghai Materials Trading Centre, a trader of metals and materials, saw its first-half earnings plunge 73.4 per cent to 6.27 million yuan, down sharply from 23.6 million yuan a year ago.

  Sales, however, surged 56.5 per cent to 581.62 million yuan, under the Chinese general accounting practices.

  The company, which trades A and B shares in Shanghai, said its car and metals trading was hurt by Beijing's belt-tightening, resulting in higher costs for raw materials.

  The occupancy rate of Shanghai Materials Trading Centre's only hotel was unsatisfactory, the company said.

  Earnings per share were 3.3 fen.

  Shenzhen property counter Gintain Industry (Group) Co's profits fell by 62 per cent while profits of exchange newcomer Hainan Pearl River Enterprises also dropped by a huge 75.8 per cent.

  Property counters were hard hit by the austerity measures, which aim to dampen fixed-asset investments including property developments.

  Gintain said its first-half earnings were 37.69 million yuan, by international accounting standards, down from 99.2 million yuan as a result of higher costs and expenses and lower property development income.

  Sales edged up 8.5 per cent to 453.24 million yuan.

  Newly listed Hainan Pearl River Enterprises was reported to have posted profit of 30.01 million yuan, under Chinese accounting principles.

  Sales fell 66 per cent to 76.97 million yuan. Earnings per share were 9.1 fen.

  Its major property development activities were in Hainan province and Shanghai.

  Shanghai Refrigerator Compressor Co has bucked the trend, with first-half earnings surging 95.9 per cent to 77.09 million yuan by international accounting standards.



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