6 Aug 2008

Richina Pacific's half-year profit down 43%

2:50 pm on 6 August 2008

Half-year profit at Richina Pacific dropped 43% to $US2.7 million compared with the same period last year.

The listed investment company says its operations, which include a leather tanning plant in China and the New Zealand construction firm Mainzeal, have felt the impact of a decline in the global economy.

Richina's revenue dropped 17% to $US175 million in the six months to June.

Chief executive Richard Yan says the company is in a strong position to weather the downturn.

Milford Asset Management executive director Brian Gaynor says shareholders were aggrieved when the company cancelled its dividend recently and the results add to that discontent.

He says Richina's share price is trading at a substantial discount to its asset value, which he says is a sign shareholders are cautious about the company.