Outlook remains positive despite downward trend
In these tough economic times, it is surprising to find companies bucking the downward trend. Yet this is the case with food producers China Green Holdings and China Yurun Food Group, according to Hong Kong analysts.
Last month China Green, which produces and sells agricultural products, reported its half-year results, announcing a 33 per cent increase in turnover year-on-year to 1.26billion yuan (HK$1.43million), and a 36 per cent year-on-year increase in net profit to 471 million yuan.
The company's solid results have largely been driven by strong sales growth in mainland China, Japan, Europe and other countries in Asia over the past year, as well as by the increase in commodities prices.
In addition, the company has been lauded for its aggressive cost-cutting measures.
China Yurun, a meat product supplier, also recently announced impressive mid-year results, declaring a gross profit of 821 million yuan, up 60.3 per cent year-on-year, and net profit of 672 million yuan, up 70 per cent year-on-year, mainly attributed to a 75 per cent growth in sales.
