February 8, 2006

China Grain Reserves Corp posts profit of RMB601 million for 2005
 

China Grain Reserves Corp., which manages China's state grain reserves, posted a net profit of RMB601 million for 2005, said a senior company official Wednesday.

The official, who declined to be named, said the company's net profit target this year is RMB442 million. He did not give a profit figure for 2004.

The official said profits this year will likely fall because of lower grain prices, as China's grain output is expected to rise further. The government's plan to extend minimum purchasing prices to more types of grains this year is also likely to reduce the company's profit, he added.

Since 2004, the government has asked state grain reserve institutions to buy in grains when their prices fall below a government-set reference price to protect farmers' incomes.

China's total grain output in 2005 rose 3.1 percent from a year earlier to 484 million tonnes. Despite two years of rising production, supply still fails to meet demand.

China Grain Reserves Corp. is a state-owned enterprise entrusted by the state council to regulate grain reserves and does not provide earnings reports. It has a registered capital of RMB16.68 billion.