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China Resources Enterprise H1 profit falls 55 pct, matches forecast
August 21, 2013 / 4:32 AM / 4 years ago

China Resources Enterprise H1 profit falls 55 pct, matches forecast

HONG KONG, Aug 21 (Reuters) - Retail-focused conglomerate China Resources Enterprise Ltd (CRE) posted a 54.5 percent fall in first-half net profit on Wednesday, matching forecasts, as slower economic growth hit sales and rising costs pressured margins.

Government-backed CRE, which has interests ranging from making beverages to operating supermarket chains, said net profit fell to HK$1.02 billion ($131.54 million) for the January-to-June period, down from HK$2.24 billion in the same period a year earlier.

That compared to an average forecast of HK$1.1 billion by three analysts polled by Thomson Reuters.

Profit attributable to shareholders stood at HK$1.01 billion, excluding the effect of asset revaluation and the disposal of non-core assets, down from HK$1.13 billion a year ago, it said.

Turnover rose 12.3 percent to HK$71.9 billion from HK$63.96 billion yuan the year earlier period.

Earlier this month, CRE teamed up with British supermarket firm Tesco, the world’s No.3 retailer, for operating hypermarkets and supermarkets in China, a move that could bring their combined market share close to hypermarket leader Sun Art Retail Group Ltd.

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