Rebate weighs down Artel

Chip giant Intel Corp's rebate reduction to distribution agents has led to Artel Solutions Group Holdings posting a 43.7 per cent plunge in profit.

Artel, one of Intel's principal authorised distributors in China, said it recorded a net profit of HK$66 million last year despite revenue surging 50 per cent to HK$2.12 billion.

In 2001, Artel recorded a net profit of HK$117.28 million on a turnover of HK$1.42 billion.

The disappointing results sent Artel's shares down 35.84 per cent to 34 HK cents yesterday.

Artel recommended a final dividend of 0.6 HK cent per share, against two HK cents in 2001.

The company said the sharp fall in profit was due to Intel's decision to reduce rebates to its distribution agents.