By LIBBY MIDDLEBROOK
Primary products and construction company Richina Pacific is making further progress to moving out of the red with an after-tax loss of $3.8 million for the 12 months to December 31 last year - a $25 million improvement on the previous year.
The chairman of the New Zealand-based company, Sir Allan Wright, said improved operating and market conditions were behind the company's strengthening performance, with venison products generating good returns along with the company's New Zealand construction business Mainzeal.
Richina, which has construction and leather-processing interests in China and New Zealand, had operating losses before tax of $5.5 million, a 79 per cent improvement on the previous year's loss of $25.9 million.
Operating revenues were up 17 per cent from $497.3 million in 1998 to $576.7 million last year, while operating surpluses excluding non-recurring items associated with discontinued businesses recorded surpluses of $11.5 million against losses of $7 million in 1998.
Richina, which closed its leather-processing operation in New Zealand last year and relocated it to Shanghai, generated surpluses of $6.6 million compared to $2 million from its New Zealand businesses while its Chinese operation had losses of $1 million during the 12 months against losses of $11.6 million in 1998.
Mr Wright said the company, which has not made a profit since 1997, would further reduce operating costs during the 2000 financial year.
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