YIZHENG Chemical Fibre reported profit after tax and before transfers of 594.88 million yuan ($534.48 million as at December 31) for calendar 1993, compared with 271.26 million yuan in 1992. After taking account of a series of transfers worth $502.71 million, the H share company's retained profit for the year was 92.17 million yuan. Earnings per share were 0.248 yuan, against 0.113 yuan for 1992. Chairwoman Wu Wenying said demand for the group's products was expected to outstrip supply. Yizheng was listed on the Hong Kong Stock Exchange in March with an offer of one million H shares at $2.38 each. Yesterday's statement made no mention of a dividend. ''Being the largest polyester producer in China, Yizheng's orders received for 1994 have far exceeded scheduled production of the whole year,'' Ms Wu said. Yizheng said production capacity would be dramatically increased on completion of its new facilities next year, under the third phase of an expansion plan. Turnover was 4.3 billion yuan, against 34.05 billion in 1992. Operating profit rose sharply to 660 million yuan, against 271 million yuan in 1992. Below after-tax profit, there were some significant transfers. In 1992, 91 million yuan was remitted to the owners, which was declared in the group listing prospectus. This payment went to the ministries of finance and trade and China International Trust and Investment Corporation. There were other sundry items mentioned on the payment which, following listing, would not be required again. Another big deduction last year was 391.74 million yuan - a transfer to owners' equity. In 1992, there was a 180.22 million yuan deduction under the same heading. A 110.97 million yuan transfer to reserves was also indicated. Yizheng said the transfer was made in accordance with its articles of association. This allows for 10 per cent of profits to be transferred to a reserve fund until the fund reaches 50 per cent of the registered capital of the company. After-tax deductions came to 84.5 per cent of after-tax profit. In 1992, these deductions accounted for 100 per cent of after-tax profit. There was no retained profit that year. Ms Wu said that production last year continued to exceed rated capacity by 10 per cent. Average production prices rose by 5.7 per cent and the average price of the group's two main products increased by 5.04 per cent. In the first quarter of the year, product prices rose 18.86 per cent for staple fibre and 9.22 per cent for polyester chip. A 3.68 per cent increase in production capacity is expected this year. The earnings per share figures take into account some 2.4 million A shares, which have yet to be listed. Pro forma earnings per share figures provided in the notes take into account the A and H share issues, along with interest earned on the capital raised at 3.5 per cent. It is indicated that earnings per share on a pro forma basis were 0.197 yuan last year, up from 0.106 yuan in 1992.
