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Government quota policy hits Top Glory profit

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Diversified red chip Top Glory International Holdings saw first-half net profit fall 28.1 per cent year on year to HK$45.45 million.

The fall was due to an adverse impact on its edible-oil refining operation by Beijing's policy of tightening quotas for imported crude oil, as well as downward pressure on the market price of drum-packed edible oil.

A loss of HK$7.93 million on its jointly controlled entities and a fall in profit from continuing operations offset a gain in profit of its associates to HK$33.01 million.

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The fall in profit from continuing operations was due to a lower write-back of provisions compared with the same period last year.

Turnover for the six months to June 30 was HK$1.03 billion, up 89.2 per cent from HK$549.38 million previously.

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Earnings per share fell to 1.70 HK cents from 2.36 HK cents.

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