Hong Kong-based conglomerate holding company CITIC Pacific, a subsidiary of Chinese state-owned investment company CITIC Group, has announced that in 2010 its net profit rose 50 percent year on year to HK$8.915 billion (US$1.14 billion), its second-highest result on record, due to improved special steel sales and asset disposals. The 2010 net profit was up from HK$5.95 billion (US$720.6 million) in 2009. Meanwhile, CITIC Pacific's revenue rose by 52 percent in 2010 to HK$70.61 billion (US$8.55 billion), up from HK$46.41 billion (US$5.62 billion) the year before.
CITIC Pacific chairman Chang Zhenming said in a statement that the Hong Kong-listed company, whose interests include steel, iron ore mining and property, has "emerged from the difficulties faced two years ago and has become stronger and better positioned for the future."
Mr. Chang said that CITIC Pacific has strengthened its focus on its special steel, iron ore mining and property businesses, which together accounted for 72 percent of its assets at the end of 2010.
CITIC Pacific's special steel operations contributed HK$2.10 billion (US$254.3 million) to its overall net profit last year, up 49 percent from HK$1.42 billion (US$172 million) in 2009, owing to improved demand and the expansion of the company's production capacity and product range.
On the other hand, CITIC Pacific's iron ore mining operations recorded a net loss of HK$346 million (US$41.9 million) in 2010, compared with a net profit of HK$376 million (US$45.5 million) in 2009, following delays in the construction of its magnetite iron ore project in Western Australia's Pilbara region.