May 6, 2010
Sichuan New Hope posts increase in net profit
For 2009, the net profit for Sichuan New Hope Agribusiness Co. rose 78.7% to RMB408.6 million (US$59.9 million), due to higher gains from its investment in two financial firms.
The company had 2009 investment gains of RMB453.2 million (US$66.4 million) from China Minsheng Banking Corp., up 29.8%. It is the bank's largest shareholder with a 5% stake. New Hope also owns 7.5% of Minsheng Life Insurance Co.
However, New Hope's operating revenue was dragged down 6.4% to RMB6.8 billion (US$1 billion) by a decline in its meat operations. The company slaughtered about 1.7 million pigs last year, down 4.9%, while chilled meat sales fell 5.9% to 162,400 tonnes.
Its feed sales in 2009 were up 15.5% at 1.3 million tonnes, while sales of dairy products rose 15.1% to 285,900 tonnes. The company noted that its overseas feed operations, particularly those in Vietnam, have been a major drive to its earnings.
New Hope said it targets operating revenue of RMB7.7 billion (US$1.1 billion) this year.