Richina Pacific Ltd turned round from a $15.3 million loss in 2001 to an $8.2 million profit in 2002, on revenue down 23% to $498.1 million.
The difference was unusuals, which took out $18.6 million in 2001 but nothing in 2002. Earnings/share improved from negative 21.2c to 11.3c/share.
Chairman Alastair MacCormick said the lift came mostly from the Chinese leather operations, which contributed $13.1 million to the total operating surplus, up 386%. It’s the 1st major contribution from the business.
Richina Pacific wants to raise $US10.5 million through a rights issue to increase production capacity.
In New Zealand, the Mainzeal construction & development business contributed $6.8 million, compared to a $2.3 million loss in 2001. Mr MacCormick said Mainzeal benefited from the recent surge in commissioning of substantial construction projects and from its policy of concentrating on the quality end of the construction market.
At balance date Mainzeal had a forward order book valued at $162 million.
The Beijing Blue Zoo made a $657,000 net surplus, compared to a $20 million loss in 2001 when its book value was written down to reflect market.
Mr MacCormick said 2001 revenue included $159 million from businesses no longer owned. The construction sector’s revenue also fell $22 million in 2002.
Richina Pacific won’t pay a dividend, instead reinvesting the surplus for growth.
The profit figure doesn’t include any contribution from the $66 million sale of Mobil-on-the-Park in Wellington in September 2002. Settlement is due on 30 June, and at that time the company anticipates booking a $2.5 million contribution to surplus. It will also have $26.5 million in extra cash after settling mortgages & other commitments.