12 Jan 2011 09:32

Gifore forecasts net profit of $9.88 mln in 2010

Beijing. January 11. INTERFAX-CHINA -Gifore Agricultural Machinery Chain Co., Ltd. (Gifore) expects net profits for 2010 to reach at least RMB 65.31 million ($9.88 million), up 30 percent year-on-year, according to a company filing on Jan. 12.

Net profit would not exceed RMB 80.38 million ($12.17 million), according to the filing made on the Shenzhen Stock Exchange where Gifore is listed.

Gifore attributed last year's growth to nationwide expansion and rising sales revenue.

Founded in 1994, Gifore focuses on development and distribution of agriculture machinery. It had more than 1,000 rural stores in 18 provinces as of June last year, according to its Web site.

Based in Chengdu, Sichuan Province, Gifore raised RMB 397.6 million ($60.17 million) after floating on the Shenzhen Stock Exchange's ChiNext board in October 2009. The company's net profit over the first half (H1) of 2010 was RMB 39.46 million ($5.97 million), up 21.25 percent year-on-year.

Gifore's shares closed at RMB 31.9 ($4.83) after morning trading on Jan. 12, up 10 percent from the previous trading day.

China's central government announced Dec. 10 at the Central Economic Work Conference in Beijing that it would increase this year's subsidies for purchases of hi-tech agricultural machinery, up from RMB 15 billion ($2.26 billion) in 2010.

- Li Xin