Embattled Citic Pacific, hit by massive losses from wrong-way currency bets last year, returned to profitability in the first half and resumed paying a dividend, even though earnings declined 43 per cent year on year.
The steel-to-property conglomerate also finalised its first co-operation agreement with its state-owned parent, Citic Group, which rescued Citic Pacific. The new arrangement would allow the Hong Kong-listed arm to take a 20 per cent stake in new mainland property projects developed by the parent, said new chairman Chang Zhenming.
Mr Chang said the two companies would share knowledge, market information and other resources, and Citic Pacific could also leverage off the vast sales network of the parent's property unit.
The two firms are evaluating several projects, including in Guangzhou, Shenzhen, Dalian, Tianjin and the northeast.
From January to June, Citic Pacific reported a net profit of HK$2.47 billion, down from a restated HK$4.36 billion the same period last year as the global recession hurt demand for its special-steel products. Sales declined 32 per cent to HK$18.1 billion.
The company declared an interim dividend of 15 HK cents a share.
The blue-chip company reported a HK$12.66 billion loss for last year after it booked a HK$14.63 billion loss from Australian currency derivatives trading.
