Sharechat Logo

Investors endure long wait for China profits

Friday 11th July 2003

Text too small?
With a portfolio of New Zealand commercial construction, an aquarium in Beijing and a leather tannery in Shanghai, Richina Pacific is one of the more interesting listed companies.

Adding much colour is Richard Yan, whose US-based investor consortium owns 51.2%. The labyrinthine international structure through which the shares are held has embroiled Mr Yan in a British Virgin Islands court case brought by two other large investors, one of them investment banking giant JP Morgan.

Richina's basic problem is a lack of profitability and its plan is to address this by pumping money into the Shanghai venture. The China operations will soon be held in a "China Holding Company," with a Chinese government licence that stipulates its capital must be boosted by $20 million in 18 months' time.

This shouldn't be difficult. Richina recently raised $10.4 million in a rights issue and took in $26 million cash from the sale of a Wellington property.

To overcome the problems of reporting in New Zealand dollars while doing business in the US variety, the company will start reporting in both currencies and has signalled a shift to a main listing in Singapore.

In the meantime the company is not setting the market alight with its trading results. Last year it made a net profit of $8.2 million and it has downgraded its profit for 2003 to $6.5 million.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Transpower sees no risk to credit metrics from incentive change
NZ dollar rises, an outlier amid rising Gulf tensions
Craigmore spends $32M to expand Kerikeri kiwifruit crop by 'more than a third'
CentrePort eyes further hub expansion
South Port beats guidance, earnings in line with 2018 record
Plexure sees revenue growth from White Castle deal
22nd July 2019 Morning Report
NZ dollar treading water as markets focus on Iran
MARKET CLOSE: NZ shares extend gain as passive funds bolster prices; Tourism Holdings climbs
NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut

IRG See IRG research reports