Hopewell's net profit down 35%

Hopewell Holdings Ltd, a Hong Kong-based property-to-infrastructure conglomerate, said its net profit slumped 35 percent to HK$3.63 billion for the year ended on June 30, 2012, from HK$5.58 billion a year earlier due to lower income from property sales.

Core profit, which excludes fair value gain on completed investment properties and exceptional items, increased 11 percent to HK$1.35 billion during the period, the company said in a statement to the stock exchange.

Sales declined 6 percent to HK$6.56 billion from HK$6.97 billion last year due to fewer sales at the developer's luxury residential project, Broadwood Twelve in Happy Valley.

Goodbaby sees higher margins

Goodbaby International Holdings Ltd, the largest stroller supplier in China, expects its gross profit margin to further improve in the second half.

Liu Tongyou, the company's vice-president and chief financial officer, gave such predictions at a media briefing for the company's interim results, citing several factors. These include lower risk of yuan appreciation, stable material and labor costs, higher operating efficiency, a bigger market share on the mainland and improved product quality.

The company expects its gross margin for the whole year 2012 to surpass that of 2011. Gross margin for the first half this year is 19.1 percent, compared with 18.5 percent from a year earlier.

The company reported at the weekend a net profit of HK$100.5 million for the first half of 2012, down 12.7 percent from a year earlier, due mainly to losses booked for the change of value in forward currency contracts.

Tingyi first-half profit up 24%

Tingyi (Cayman Islands) Holding Corp, the maker of "Master Kong"-branded instant noodles and beverages, reported a 24-percent increase in first-half profit on falling raw material costs. The stock rose.

Net income rose to $284.4 million in the six months ended in June from $229 million a year earlier, the company said in a statement to the Hong Kong stock exchange. That beat the $275.8 million average of five analyst estimates compiled by Bloomberg. Revenue climbed 9.5 percent to $4.53 billion.

Tingyi is using its 57 percent of the Chinese instant-noodle market to capture rising consumer demand for premium foods with higher profit margins, according to analysts at BOCOM International Holdings Co Ltd. The foodmaker announced last November a tie-up with PepsiCo Inc, under which a Tingyi unit became the franchise bottler of its drinks in China.

Yancoal set to cut costs

Yancoal Australia Ltd, the third-biggest standalone coal producer in Australia, is reviewing expansion plans at its seven mines to help cut costs as commodity prices decline.

"Expansion plans across all mines will be reviewed and ranked to ensure that the appropriate capital expenditure discipline is maintained," the Sydney-based company said on Monday in a presentation to Australia's stock exchange.

Coal prices fell during the first half as an economic slowdown crimped demand. Metallurgical coal, used to make steel, may remain weak in the current half, Yancoal said.

Coal production may be higher than last year, it said, as new mines began output. Yancoal, controlled by China's fourth-largest coal producer Yanzhou Coal Mining Co, reported thermal coal sales of 1.9 million metric tons during the June quarter, 29 percent higher than last year, and coking coal sales of 2.1 million tons.

Bloomberg - China Daily

(HK Edition 08/21/2012 page2)