Red chip Top Glory International Holdings has posted a loss of about HK$688.91 million for the half-year to June 30, compared with a profit of HK$45.46 million a year earlier.
The company attributed the loss to dilution of its investment in sister red chip Cofco International and provisions for property investments.
Turnover fell to HK$859 million from HK$1.04 billion from a year earlier.
Top Glory, the property investment flagship of China's state-owned food trading giant China National Cereals, Oils & Foodstuffs Import & Export (Cofco) group, recorded a HK$160.16 million loss after a sizeable asset injection into Cofco International from its parent earlier this year.
In the asset restructuring, Cofco International paid HK$1.1 billion for edible oil refineries and wineries by issuing new shares to the parent at HK$1.60 each, a considerable discount from the book value of about HK$2.30 a share.
Top Glory's stake in Cofco International was reduced to 21.85 per cent from 51.13 per cent.
Vice-chairman Xue Guoping said the company booked the loss in line with accounting standards and had nothing to do with its operations.