Richina forecasts 160 per cent leap

Former New Zealand investment company Richina Pacific says its full-year profit will exceed last year's result by 160 per cent.

The company said it expected a profit "well in excess" of US$6 million ($8.43 million) for the year to December 31, up from its previous forecast of US$5 million.

Richina chairman John Walker told shareholders at a meeting in Auckland yesterday that the company's improvement in performance was "directly attributable" to its Shanghai Leather Co Ltd (SLC) acquisition.

Richina paid US$20.68 million for a 68 per cent stake in SLC in October, and yesterday shareholders approved Richina's plans to increase its SLC holding to 100 per cent and the necessary funding arrangements to complete the deal.

Walker said the acquisition was a "ground-breaking deal that will establish a path for a very prosperous future".

He also said Bermuda-registered and Singapore-based Richina's New Zealand-based Mainzeal construction and development business, and its Beijing Blue Zoo, had performed strongly and delivered on forecasts.

Richina shares rose 2c to a 12-month high of 67c yesterday.

- NZPA