High demand for fruit and vegetables and dairy expansion the main drivers
Green farming agribusiness company Chaoda Modern Agriculture (Holdings) is not about to 'buy the farm' as it has published margins that would be the envy of Microsoft Corp.
Chaoda posted an astonishing 53 per cent increase in earnings before interest, tax, depreciation and amortisation. Turnover increased 20 per cent to 2.23 billion yuan for the year to June, mainly on the back of production base expansion.
The management said the company was geared at between 30 and 40 per cent.
Profit attributable to shareholders after exceptional items rose 30 per cent to 1.31 billion yuan compared with last year.
Its core fruit and vegetables business accounted for 94 per cent of total business, with a gross margin of 70 per cent. The company declared a final dividend of 11.1 fen per share.