Trading company Guangnan Holdings saw a 25.17 per cent fall in first half revenue, due largely to the Government's fight against bird flu in May. The troubled red chip said turnover dipped to HK$1.05 billion, from HK$1.4 billion in the previous corresponding period. The fall in core live and fresh foodstuffs trading business - which accounted for nearly 63 per cent of total revenue - was blamed for the revenue drop. Guangnan, which has a market share of about 85 per cent in the provision of livestock in the SAR, said its core business fell 14.75 per cent to HK$661.22 million for the first six months, against HK$775.63 million in the last corresponding period. In May, the government closed 868 markets and halted the sale of live chickens and ducks from China for more than a month. Keen competition from imported frozen foodstuffs and from smuggling of foodstuffs also hit Guangnan, the company said. The closure of loss-making businesses such as Guangnan (KK) Supermarket chain in June also contributed to the drop. Revenue from its supermarket operations fell to HK$276.8 million for the first half, down from HK$342.47 million last year. However, the debt-ridden company said the closure and disposal of loss-making businesses also contributed to a 96.85 per cent narrowing down in net loss for the period to HK$9.8 million. In the previous corresponding period, Guangnan lost HK$312.21 million. A substantial cutback in finance costs also helped improve the company's bottom line. Guangnan had spent HK$90.56 million on finance costs for the six months to June 30 last year, mainly because of the debt restructuring plan. Finance costs dropped to HK$333,000 for the first half of this year.