Richina Pacific Ltd, the holding group for Shanghai Richina Leather (SRL), has said it is on track to achieve a good improvement on last year’s operating profit of $2.5 million, with all three operating businesses contributing to the overall performance.
At the group’s recent annual meeting in Auckland, New Zealand, Richard Yan, acting chairman of the Bermuda registered and Singapore based company, told shareholders that, after five months of the current financial year, the international investment company was on track to achieving its targets for the year and an improvement on the year previous. This was attributed to the restructuring efforts of the previous few years and a good positioning of the businesses to take advantage of new opportunities.
The group’s tannery business in Shanghai is currently being equipped with new machinery, expected to be running by the fourth quarter (October to December). With the new capacity the machinery offers, the company is hoping to enter the automotive leather business and become the leading automotive leather supplier in China, a booming car market expected to take over Japan.
The group wants to turn automotive leather into a significant and profitable part of its overall business with the view of listing Richina Leather as a separate company, Mr Yan said. It is hoped to become a world class integrated leather manufacturer.
Of the tannery’s three divisions, the shoe division is the most important and profitable. The upholstery division was also said to be performing well. However, the garment division was said to be contributing to the reduction of the group’s overall profitability.
The meeting also saw the appointment of former Prime Minister Jenny Shiply and a New York lawyer John Walker to the board, along with the long serving director Roger Wang. Mr Walker has been acting as chairman as of 1 June 2004. Before joining the group he has worked with the Chinese government, facilitating the flow of western capital and management expertise to China and assisting in reforming the country’s economy. Mr Yan, an acting chairman for the previous nine months, continues as e CEO and managing director.
