The directors of Richina Pacific Limited have reaffirmed their previous forecast for the full year 2005 and expect the company to report net profits exceeding its 2004 record net profits of $8.2 million. This is despite the small loss of $234,000 for the third quarter of 2005. Revenues for the quarter were $133.9 million.

The cumulative results for the nine months ending September 30, 2005 were total revenues of $377.5 million and net profits of $4.2 million - a similar result to the same period last year.

During the period reported, Richina Industries continued its restructuring and consolidation in its Shanghai tanning operations, which have led to a number of significant personnel changes. The company stated that under new leadership, the upholstery leather tanning division has been stabilised, although there will be a sizeable loss arising from old stock disposal and provisions. The production volumes for auto leather are increasing at a fast pace, while the ovine garment and the bovine shoe operations are both below their quarterly forecast expectations. The remaining manufacturing activities of Shanghai Leather Corporation are performing ahead of forecasts.