China Resources Logic posted a net profit of HK$65.17 million for the six months to June 30, against a net loss of HK$11.58 million over the same period a year earlier. Chairman Song Lin said this was the first interim result that fully reflected the company's new business portfolio and strategy. The red chip diversified into the production of air-conditioner compressors and integrated circuit chips for consumer-electronics producers in an asset acquisition from its parent China Resources (Holdings) at the beginning of the year. China Resources Logic intends to become the technology unit of CRH, an unlisted SAR-based investment unit of China's foreign trade ministry. 'The impressive result signifies that the overall businesses are all performing within our expectations and the directors are very confident about its future growth potential,' said Mr Song. During the period under review, the company's turnover amounted to HK$620 million, which represented an increase of 647 per cent from a year earlier. Earnings per share were 4.32 HK cents. No dividend payment was recommended. Mr Song said the firm's compressor division achieved satisfactory results following a technology upgrade and tight cost-control measures. The division, with 10 per cent of the market, accounted for 86 per cent of the company's profit during the six months. Mr Song said the company would concentrate on the semiconductor and compressor business in China.
