Shanghai Industrial earnings hit by decline in car-parts unit

First-half net profit at Shanghai Industrial Holdings fell a year on year 29.7 per cent as the firm felt the pinch from lower contribu tions by its car-parts division and reduced interest income.

Net profit was HK$485.3 million compared with HK$590.5 million in the first six months last year.

The bottom line was also lower due to the absence of any exceptional gains.

Chairman Cai Laixing said stripping out last year's exceptional gain of HK$100 million from the sale of shares in cosmetics and skin-care maker Shanghai Jahwa United meant the first-half fall narrowed to 17.8 per cent.

Interest income was down HK$63.14 million to about HK$29.4 million. Car-part sales registered a net profit of HK$42.3 million, a fall of 52 per cent.

Despite the fall in profits, the company declared an interim dividend of 15 HK cents, 7 per cent higher than last year. Earnings per share were 52.5 HK cents, down from 63 HK cents previously.

Mr Cai pointed out the core operations performance brought an earnings growth in the first half and the company was optimistic about the profit outlook in view of an expected higher contribution from its logistics, technology, medicine and biotechnology investments.