Guangzhou Investment, the listed arm of the Guangzhou government, yesterday reported flat attributable profits of $208.94 million for the six months to June, a gain of just $200,000 or 0.09 per cent over the same period in 1995. It said earnings from its cement manufacturing and property interests were disappointing but were bolstered by a robust performance from its paper manufacturing business. Turnover soared 16.6 per cent to $1.21 billion while operating profit climbed 6.3 per cent to $307.09 million. Fully diluted earnings per share were 7.93 cents against 8.04 cents previously. The recommended dividend was left unchanged at 2.5 cents a share. In tandem with the results, Guangzhou Investment announced a range of corporate changes designed to boost earnings and generate cash including a plan to spin off its mainland infrastructure projects this year. The decision marks the latest in a line of infrastructure listings division, following New World Development Infrastructure, Cheung Kong Infrastructure and Road King Infrastructure. Guangzhou Investment also wants to sell strategic stakes in its core paper-making and cement businesses to overseas investors to generate cash for expansion. Its existing mainland infrastructure projects, including the Xinfeng Toll Road and the Humen Bridge, both of which are expected to be fully operational by the end of 1997, are to be separately listed. A spokesman said the company would have to wait until it had acquired several more toll roads before it met requirements to float the business as an infrastructure concern. The company also said it was in negotiations to sell part of its stake in three cement-making plants in southern China to Cimenteries CBR of Belgium, which was expected to increase its existing 5 per cent stake substantially. It also was planning to sell a stake in its paper-making operations to an overseas paper producer, it said. The company said a separate listing of its cement business was not planned with priority being given to negotiations with Cimenteries. It would maintain its interest in the cement business by increasing its stake in the Zhujiang Cement Plant in Guangzhou. It owns 92 per cent of China Century, which has 51 per cent of Zhujiang Cement. Introduction of new measures by the Guangzhou municipal government to stimulate the property market meant the company would speed up its plan to develop small-sized residential property in the city. It soon would start a residential project with a gross floor area of about five million sq ft, in Zhuang Tou, it said.