Beiren Printing Machinery Holdings, China's largest manufacturer of sheet-fed offset presses, says its net profit dropped 2.4 per cent to 91.19 million yuan (about HK$84.53 million) last year. Sales skidded 15.2 per cent to 382.61 million yuan. Earnings per share were 22.8 fen, with a final dividend of six fen. The figures were based on the accepted accounting principles of the Hong Kong Society of Accountants. Beiren did not explain the reasons for the profit drop. According to the company's financial statement prepared under Chinese accounting practices, its pre-tax profits from major operations fell 24 per cent to 82.68 million yuan. Its profitability was boosted by an investment income of 18.67 million yuan, or 18 per cent of its pre-tax earnings under the set of mainland figures, compared with 13.08 million yuan a year ago. The company has short-term investments of 4.66 million yuan, mainly invested in shares at the end of last year, down from 14.65 million yuan from a year ago. Long-term investments amounted to 41.21 million yuan, down from 109.26 million yuan a year earlier. Analysts said Beiren was hit by sluggish demand resulting from the credit crunch and rising newsprint and paper prices. It had invested 324 million yuan of its H-share listing proceeds of 467 million yuan on equipment, repayment of loans and technology development. In order to secure a larger market share, Beiren had taken a 51.2 per cent stake for 14.84 million yuan in a joint venture with Jiangsu Province Nantong Machinery Equipment Factory.
