PEKING (dpa-AFX) - Hong Kong-based Citic Pacific Ltd. (CTPCY.PK) Friday reported a higher first-half profit, as revenues grew, especially in its special steel and property businesses.
Citic Pacific, 58 percent owned by Citic Group in Beijing, is a diversified company with a primary focus on Special Steel manufacturing, Iron Ore Mining and Property development in mainland China.
First-half profit attributable to shareholders increased to HK$6.01 billion or HK$1.65 per share from HK$4.87 billion or HK$1.33 per share reported last year.
Pre-tax profit was HK$8.4 billion, up from HK$6.35 billion a year earlier. The company has restated its prior-year figures. Citic Pacific said its previous year had a one-time gain of HK$1.77 billion.
Profit contribution from Special Steel increased 21 percent to HK$1.4 billion, Mainland China Property contributed HK$1.71 billion, up 473 percent from last year and Energy business profit rose 59 percent from the preceding year.
Revenues for the period improved to HK$45.94 billion from HK$31.87 billion in the preceding year.
Chang Zhenming, chairman of the company said, 'Sales of residential projects in the first half of 2011 were slow as a result of the measures put in place by the government to moderate the rapid rise of property prices. Looking at the rest of the year, sales will likely continue to be sluggish.'
Looking ahead, the company said it expects capital expenditure on its iron ore mine to remain high in 2011, but anticipates a significant cash flow from the mine once it begins production.
In addition, the board recommended an interim dividend of HK$0.15 per share.
In Hong Kong Citic shares are currently trading at HK$14.98, up 2.04 percent.
CTPCY.PK closed Thursday's regular trading at $9.14 on the OTC.
Copyright RTT News/dpa-AFX
© 2011 AFX News
