Shares in New Zealand investment company Richina Pacific fell sharply on Monday (December 17) after the company released a warning on second half profits in a letter to shareholders, blaming the upheaval in the world leather industry. Richina Pacific is chiefly involved in construction, property development and leather processing.

The leather arm of the company, Shanghai Richina Leather, has operated at a deficit for the past few months, although the unit will report some profits at the end of the year. The letter said that the main problems for the leather business were the fall in the international price of hides and skins and the move by many international shoe and garment factories to delay or cancel orders.

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