Company Report: Sanquan, Evergrande, CITIC

Food giant’s profits surge; developer posts strong June; asset managers’ merger denial 

Company Report: Sanquan, Evergrande, CITIC
Guandong’s proposed Evergrande Stadium

(ATF) Chinese frozen food giant Sanquan Foods has reported a jump in earnings in the first half of the year.

Net profit rose between 390% and 420% year-on-year to reach 435 million yuan ($61.6m) and 462m yuan, the company said in its preliminary earnings estimate filed with the Shenzhen Stock Exchange.

Sanquan Foods attributed the profit growth to optimised product portfolio, improvement in the quality of its sales channels, and product innovation.

READ MORE: Street stalls help China on road to recovery

China Evergrande Group, one of the leading developers in China, said contracted sales in June totaled 76bn yuan, up 51.3%, the company said.

Its contracted sales in terms of floor area rose 84% to 8.55 million square metres in June.

As the coronavirus epidemic hit the property sector, Evergrande developed an app to provide one-stop services from showcasing houses through virtual reality technology to signing contracts remotely.

READ MORE: China housing market flatlines

CITIC Securities and China Securities have denied rumours the two companies are planning to merge.

The announcement on Sunday was in reposes to a Shanghai Stock Exchange inquiry.

CITIC Securities said that it received a written reply from China CITIC, its largest shareholder, on July 4, which read: 

"It has been confirmed with CITIC Group that CITIC Group has not discussed any plans for restructuring and merger of CITIC Securities and China Securities, and CITIC Group has not signed any agreement with Central Huijin Investment. concerning the acquisition of shares of China Securities."

CITIC Jiantou said that it received a reply Sunday from Central Huijin, the second largest shareholder: 

"As of now, there is no major information related to your company that should be disclosed but not disclosed.”

READ MORE: CITIC Bank to sell 40bn yuan of secondary capital bonds