Profits rise on clothing stake sale
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China Resources Enterprise Ltd, a consumer goods company and Chinese partner of SABMiller Plc, yesterday reported its first-half profit more than tripled after consolidation of its businesses.
Net income surged to HK$4.24 billion (US$545 million), or HK$1.77 a share, from HK$1.16 billion a year earlier in the first six months, according to a statement filed to the Hong Kong stock exchange.
Sales increased 20 percent year on year to HK$42.6 billion during the period.
"Following the sale of our entire interest in a brand-fashion distribution business on the Chinese mainland, the group focuses on its core consumer goods business," Chairman Qiao Shibo said, adding that a net gain of about HK$3 billion was made from selling its entire stake in a clothing venture to partner Esprit Holdings Ltd.
The core business of the group now includes retail, beer, beverage and food processing and distribution.
Looking to the future, Qiao said that a steady economy on the Chinese mainland formed a solid foundation to enable the company to improve its performance.
