Zhuhai government's hotel arm sees profit jump 35pc

Zhu Kuan Development, the tourism and hotel investment arm of the Zhuhai municipal government, posted a 35.9 per cent increase in net profit to $73.4 million for the year to April.

The result was in line with its net profit forecast of more than $70 million stated in its listing prospectus.

The net profit growth was smaller than the 53.2 per cent surge in turnover to $300.9 million. Earnings per share rose to 24.98 cents from 18.37 cents.

Directors proposed a final dividend of 2.5 cents a share for the year.

Chairman Cai Guangcheng, who is also vice-mayor of Zhuhai, said the performance of the red chip, listed in May this year, had exceeded expectations.

Despite the impact of the Asian financial crisis, tourism development in Zhuhai had been satisfactory and the number of visitors to the city remained unchanged in the first quarter this year.