Yunnan Enterprise (Holdings) chairman Liu Wandong (right) and managing director Ma Pizhi announcing the red chip's net profit fell 41.2 per cent to HK$4.85 million in the year to March 31 because of a reduction in its cigarette trading business. The continuing fall in interest rates also hit bank interest income. Basic earnings per share fell by the same margin as the net, to 1.057 HK cents. The company did not recommend a final dividend. Diversification into biotechnology is providing benefits, with contributions of about 64 per cent of the company's pre-tax profit. Mr Liu said the cash-rich firm recently set up another biotechnology venture to boost its sector exposure. 'The company forecasts that with the rapid growth generated from the biotechnology projects, their increasing returns will consolidate the company's profit base,' Mr Liu said.