BEIJING, March 18 (Chinese media) -- Beijing Sanyuan Foods Co., the only listed company to sell melamine-free products during the country's dairy scandal, said Wednesday that its net profit in 2008 jumped 87.2 percent from a year earlier.
Net profit rose to around 40.75 million yuan (about 5.96 million U.S. dollars), up from 21.77 million yuan in 2007. Earnings per share was 0.06 yuan last year, doubling the level of 0.03 yuan in 2007, according to the company's statement submitted to the Shanghai Stock Exchange.
Sanyuan credits its impressive results to rising sales of its dairy products such as powdered and liquid milk. Its sales revenue of dairy products rose 29.7 percent to 1.39 billion yuan from 2007.
The company is expected to be the only one profitable among the listed dairy firms in China as other companies such as Inner Mongolia-based Yili Group and Mengniu Dairy, as well as Shanghai-based Guangming, forecast losses for 2008. No specific figures for those losses were disclosed.
However, Sanyuan was not immune from China's tainted dairy scandal as exports of its milk powder declined 55 percent to 3.15 million yuan from 2007.
Sanyuan said it would face a capital shortage this year. Cash outflow exceeded inflow by 35.97 million yuan in 2008, reducing the net cash flow from operating activities by 145.4 percent from a year earlier. The capital balance at the end of 2008 stood at 167 million yuan.
Sanyuan bid 616.5 million yuan to win an auction on March 4 for the assets of Sanlu Group Co., the bankrupt Chinese dairy company at the center of the tainted-dairy scandal.
Analysts said Sanyuan needs a large amount of money for the operation of Sanlu assets, which puts great capital pressure on the company.
Posts
No comments:
Post a Comment