China Merchants Hai Hong Holdings Co saw turnover and operating profit drop last year, but net profit surged after an exceptional gain from the spin-off of a subsidiary. The listed arm of China's Ministry of Communications posted a 54 per cent increase in net profit to $158 million, compared with $103 million in 1995. Turnover fell 10 per cent to $802 million, while operating profit slid 3 per cent to $98 million. The company recorded a $54.8 million exceptional gain from the spin-off of Ming Wah Universal on the Singapore stock market. Chairman and general manager Li Yinfei attributed the decrease in turnover to a downturn in ship charters and a slowdown in paint business. The company recommended no final dividend for the year against six cents for 1995.