New Zealand’s Richina Pacific has adjusted its profit forecast for its financial year, increasing the figure from $5 million to $6 million for the year ending December 31. This equates to an increase of 160% on last year’s profits and the improvement in performance is being attributed to the acquisition of a 68% stake in Shanghai Leather Company (SLC) in October 2004.
Chairman of Richina, John Walker, informed shareholders about the adjusted forecast at a meeting in Auckland on December 8. He described the acquisition of a stake in SLC as a “ground-breaking deal that will establish a path for very prosperous future”. He also announced that Richina is seeking shareholder approval to increase its ownership of SLC to 100%.
In acquiring 68% of SLC, Richina has already obtained 100% ownership of 43 businesses and their land rights, and a minority interest in another eight enterprises. Richina also now owns the land rights to the site of its leather tanning and manufacturing operation in Shanghai.
