Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Richina Pacific Confirms Profit Forecast At $8 Mil

December 20, 2002

Media statement

Richina Pacific Confirms Profit Forecast At $8 Million

Statement made by Alastair MacCormick, Chairman, Richina Pacific Limited, based on addresses given at today’s special meeting in Auckland


Richina Pacific has confirmed that its after tax operating profit for the year ending 31 December, 2002, will be in the region of $8 million.

At today’s special meeting to confirm Richina Enterprise Holdings Limited ( REHL ) as underwriter for its forthcoming rights issue to raise US$10.4 million, shareholders were told that the “lion’s share” of that profit will come from Shanghai Richina Leather (SRL ) its international leather manufacturing operation in China.

At the half year Richina Pacific reported an after tax profit of $4.2 million.

Shareholders at the meeting approved REHL, a related party, underwriting the issue.

Funds raised from the rights issue will be used to fund SRL’s day-to-day operations and expansion of its buildings, plant and equipment.

SRL’s CEO, Dennis Thams, told the meeting that in this financial year the tannery would produce 55 million sq feet of leather, for a sales value of about NZ$200 million, up 30% on the previous year’s turnover.

In the next three years the tannery is looking to increase its leather manufacturing capacity on a monthly basis from the current 6.6 million sq feet by 68% to 11 million sq ft a month.

To achieve this, SRL will need to invest an additional US$13 million in new plant and buildings.

With that level of investment, SRL anticipates it could double yearly sales from the current US$102 million to US$225 million in 2005.

Leather for shoes remains SRL’s major market, with China producing some 50% of the world’s footwear.

Major markets for leather furniture and automotive leather are also evolving in China.

SRL has created for itself a position where it is recognized as a leading supplier, and the SRL brand sits proudly in the upper echelons of the supply chain for the world leather industry.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>