Companies

Canada listed Zungui profit falls on higher costs

(Agencies)
Updated: 2010-11-25 14:12

Clothing and footwear retailer Zungui Haixi Corp's quarterly profit dropped 8 percent, hurt by higher expenses on opening new stores and selling costs.

The Chinese company, which completed its Canadian initial public offering in December, reported a profit of C$7.1 million, or 11 Canadian cents a share, for July-September, compared with C$7.7 million, or 15 Canadian cents a share, a year ago.

Revenue rose 17 percent to C$50.4 million.

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The company, which opened 120 new distributor-owned retail outlets in the quarter, said selling expenses more than doubled to C$1.78 million.

Zungui is one of the several Chinese companies which have launched its business in Canada as the two countries' trade ties strengthen.

Trade between the two countries reached nearly $35 billion in 2008, making China Canada's No 2 trading partner after the United States.

Some of the other companies which have entered Canadian market are Industrial and Commercial Bank of China, Sinopec and China Investment Corp.

Zungui Haixi shares, which have lost about 8 percent since going public, closed at C$2.95 on Tuesday on the Toronto Venture Exchange.