Profit Plummets For Leading Chinese Juice Maker

Chinese fruit and vegetable juice maker Huiyuan published its annual report for 2012, stating that its net profit decreased by 94.8% to CNY16.16 million during the reporting period.

According to the report, Huiyuan's total operating revenue in 2012 was CNY3.981 billion, a year-on-year increase of 4.1%; its profit attributable to shareholders was CNY16.16 million, a year-on-year decrease of 94.8%; and its basic earnings per share were CNY1.1.

The report also showed that during 2012, Huiyuan's gross profit was CNY1.115 billion, a year-on-year increase of 15.6%. The growth was mainly attributed to the sales increase; favorable changes in product mixes; and raw material cost decreases. The company's gross margin increased from 25.2% in 2011 to 28%.

By the end of 2012, Huiyuan's outstanding bank loans were CNY2.983 billion and its gearing ratio was 71.2%, an increase of 10.2 percentage points. In 2012, Huiyuan gained a CNY250 million government subsidy.

In addition, due to the increase of advertising expenditure, the company's sales and marketing expenditure increased from CNY933 million in 2011 to CNY980 million. By the end of 2012, the number of the company's employees decreased from 10,397 in 2011 to 9,048, a decline of 13%.

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