A revival in shares in Asian Citrus floundered as the group unveiled a plunge in profits and ditched its dividend – offsetting thoughts of a “positive” ahead over the prospect of a change of leadership. The group, which had braced investors for a fall in profits, said that its underlying earnings for the July-to-December half had tumbled by 84% to 41.0m remninbi [US$6.7 million]…Full Article: Fresh Plaza Feb 2014

Key point

  • According to the chairman and chief executive of Asian Citrus, the company canceled an expected dividend in order to finance extra fertilizer and agrichemical applications on its orchards after the initial applications were washed away by heavy rainfall.

ChinaAg Comment

  • In January 2013, Asian Citrus shares dropped to their lowest value since 2009/10 due to crop losses from heavy rainfall and high wages (e.g. wage inflation in China). In July 2013, the company announced decreased production volumes in Hepu Plantation (~1.3 million orange trees as of June 2011), Guangxi Zhuang Autonomous Region, southern China

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