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China Resources may sell off its interest in Esprit

China Resources Enterprise may sell its stake in a joint venture with clothing company Esprit Holdings in order to focus on its retail, food and beverage businesses, Bloomberg reported. Frank Lai, CFO of China Resources Enterprise, confirmed that the company was in talks with interested parties over the sale of the “non-core business,” but he declined to name them. China Resources saw its net income fall 22% to US$150 million in the first half, as profits from the fashion business declined by 30.5% to US$20.2 million. The company has a 51% holding in its venture with Esprit, which owns more than 1,100 self-operated and franchised stores in mainland China. China Resources’ beverage earnings more than doubled in the first half. The company – which also has interests in food processing and distribution, retailing, textiles and ports – produces Snow, China’s best-selling beer by volume through its joint venture with SABMiller.

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