Guangzhou Investment, the listed arm of the Guangzhou government, yesterday reported flat attributable profits of $208.94 million for the six months to June, a gain of just $200,000 or 0.09 per cent over the same period in 1995.
It said earnings from its cement manufacturing and property interests were disappointing but were bolstered by a robust performance from its paper manufacturing business.
Turnover soared 16.6 per cent to $1.21 billion while operating profit climbed 6.3 per cent to $307.09 million.
Fully diluted earnings per share were 7.93 cents against 8.04 cents previously. The recommended dividend was left unchanged at 2.5 cents a share.
In tandem with the results, Guangzhou Investment announced a range of corporate changes designed to boost earnings and generate cash including a plan to spin off its mainland infrastructure projects this year.
The decision marks the latest in a line of infrastructure listings division, following New World Development Infrastructure, Cheung Kong Infrastructure and Road King Infrastructure.
Guangzhou Investment also wants to sell strategic stakes in its core paper-making and cement businesses to overseas investors to generate cash for expansion.
