China Resources eyes potential acquisitions

Hong Kong-listed conglomerate China Resources Enterprise is looking to make acquisitions as competitors come under pressure in the less favorable economic environment, the South China Morning Post reported. Chen Shulin, managing director of the red-chip company, said talks were in progress with several potential targets, but declined to give further details. China Resources yesterday announced first-half profit of US$130.88 million from its continuing operations, up 17% year-on-year thanks to rising incomes and strong domestic consumption. The company’s retail and beverage units saw profits rise by 44% and 24%, respectively. However, if gains derived last year from the sale of the company’s petroleum business and other non-core assets are included in the comparison, first-half net profit actually fell 60%. China Resources made no major acquisitions in the first half, spending only US$371.4 million of its US$896.5 million capital budget for 2008.