Liaoning Huajin Tongda Chemicals drops on forecast of profit plunge
Shares in Liaoning Huajin Tongda Chemicals (Liaotong), a major Chinese chemical fertilizer manufacturer, fell 2.74 percent to close at 11 yuan (1.6 U.S. dollars) Wednesday (January 27) after the firm projected a plunge of about 45 percent in annual net profits last year.
In a statement filed to the Shenzhen Stock Exchange earlier in the day, the Panjin-based company said profits would fall to around 210 million yuan, with earnings per share down to about 0.18 yuan, from 0.32 yuan in 2008.
Liaotong said falling profits were largely because of a production decrease in 2009 when it overhauled three major fertilizer-producing bases. Falling sales income because of lower prices of fertilizers in 2009 also contributed to decrease in profits, it said.
