Huiyuan' china solar inverter s projected loss surprises analysts
china solar inverter stretch film machine car washing equipment Portefeuilles circuit breaker factory Veste bottes blanches Preschool playground equipment glasses frames bellow sealed valve Hydraulic Control Butterfly Valve guangzhou escort tunique pas chère Herbicide USI INTERIOR air conditioner motor hex nut mini jupe power cord maplestory mesos
Huiyuan's projected loss surprises analystsPublished: 11 Aug 2009 08:02:01 PST

By Chen Xiaomin

The warning by Huiyuan Juice Group that it expects to show an operating loss in the first half of 2009 surprised some analysts today.

The company said its interim results for the first six months was expected to show a significant decline, and that it might record an operating loss.

“I didn’t expect Huiyuan Juice to be in the red in the first half,” Feng Dandan, a beverage analyst at Guotai Junan Securities, said yesterday.

She said the expansion of its sales force might have contributed to the decline, in addition to the two major reas** identified by Huiyuan during its Friday announcement.

A significant decrease in sales due to uncertainties associated with the failed Coca take-over offer and restructuring initiatives by the group, were said to be the primary causes.

The planned $2.4 billion takeover was rejected by the Ministry of Commerce under an anti-monopoly law.

“Huiyuan Juice didn’t have time to take care, spending a lot of energy on its businesses in the first three months,” Feng said.

Feng said Huiyuan steered its attention back to its own businesses after the deal was pronounced dead, enlarging its sales force to 12,000 from 2,000, which lasted till June. That added on labor costs and diluted already low sales.

Huiyuan Juice said stronger controls over its sales channels are expected to improve the situation.

“We bought sales networks from distributors in eight large cities – Beijing, Shanghai, Wuhan, Tianjin, Taiyuan, Chongqing, Jilin and Chengdu in 2008. We believe Huiyuan Juice will benefit from this adjustment in the long run,” a Huiyuan spokesman who declined to be named said in an e-mail today.

The company expressed confidence about its performance in the second half.

“As the uncertainties associated with the proposed Coke takeover offer have been cleared as a result of its lapse, and the economic benefits of the implemented restructuring initiatives will gradually crystallize. It is expected that the operation and financial performance of the group will improve in the second half of the year as compared with the first half of the year,” the company wrote to the Hongkong Stock Exchanges and Clearing (HKEx).

Feng also projected an upbeat future for the company.

“Its sales will increase by 15 percent in company with the whole drinks industry,” he said.

The company launched three new products including “Lemon me” in March and acquired a milk product producer with 130 million yuan ($19 million) in late July.

Feng said mid- and high-intensity juice products would continue to be the juice maker’s main products.

“In the second half, Huiyuan Juice will focus on mid- and high-intensity juices, whose juice content stay at 26 to 98 percent and 100 percent respectively,” said Feng. “Low juice intensity products such as Lemon me and milk products are only ways to enrich its product lines and utilize idle capacity.”

The Huiyuan spokesman struck a similar note.

“To maintain a leading role in mid- and high-intensity market is still one of Huiyuan Juice’s targets. Meanwhile, we believe milk products will lead us onto a road of diversity.”

Huiyuan recorded revenues of 1.29 billion yuan ($189 million) in the first half of 2008, down 5.2 percent from 1.37 billion yuan ($200 million) year-on-year. Gross profit dropped 22 percent year-on-year to 391.5 million yuan ($57.3 million).

Explore the World, Understand China!
Please log on www.gloaltimes.cn

クレジットカード現金化 クーポン seoサービス CFD