Pithy returns for AIM’s Chinese newcomers
Two AIM newcomers from China both reported strong trading performances yesterday.
Asian Citrus, the largest orange plantation owner and operator in China and the biggest Chinese firm on AIM, reported its first full-year results since floating on 3 August.
Pre-tax profits for the year to 30 June soared by more than 60 per cent to £18.9m on sales of £22.6m on £19.3m.
The company owns two orange plantations in the south of China, roughly the size of Guernsey.
The Hepu plantation, in Guangxi province, generated all the company’s revenues as the Xinfeng plantation in Jiangxi is still under development. It should start producing oranges in 2007.
Output from Hepu was about 96,977 tons, 17 per cent more than in 2004. Chairman Tony Tong said: “We will explore other opportunities and we are negotiating with national supermarket chains to develop direct sales.”
He added that the group intended to adopt a dividend policy ensuring a pay out equivalent to at least 10 per cent of the net profits, starting from the year to 30 June 2006.
Separately, EBT Mobile China, the mobile phone retail chain, reported an increase in the key October holiday results.
The Chinese have three major holidays, and the week of 1 October is one of them, celebrating the proclamation of the People’s Republic of China by Mao in 1949. The company reversed into cash shell the Trading Exchange on 8 September.
Sales during the seven-day holiday period were 48 per cent ahead of those on 2004, and same store sales were up over 3 per cent.