December 03, 2008

Citic Pacific H1 profit jumps by 44% YoY due to steel

Bloomberg reported that Citic Pacific Ltd, the Hong Kong arm of China's biggest state owned investing company, profit during January to June 2007 surged by 44% YoY on steel production and the sale of a stake in a phone services unit.

Citic Pacific Ltd said in a statement to the city's stock exchange that its net income rose to HKD 4.97 billion (USD 636 million) in January to June 2007 from HKD 3.44 billion in H1 of 2006 while its sales fell to HKD 19.6 billion from HKD 22.88 billion.

Citic Pacific Ltd is benefiting from increased investments in steel and property projects in China where the economy grew at its fastest pace in 12 years in the six months ended June 30th 2007.

Mr Larry Yung chairman of CITIC said that “As the Chinese economy continues to grow, the demand for high quality special steel will continue and the profit contribution from the company's steel manufacturing business doubled.”