September 22, 2008

Hong Kong-listed China Agri-Industries Holdings aims to double its oilseed processing capability in the next two or three years after reporting a 174-percent jump in first-half net profit.

China Agri is expanding in the oilseed industry to take advantage of rising prices and demand, according to managing director Patrick Yu Xubo.

The company's move follows an announcement by China's top planning body the National Development and Reform Commission that would restrict existing oilseed processing companies which have more than a 15-percent market share from setting up new plants to expand capacity.

Mr Yu said China Agri's market share was below the threshold, so it still had room to expand.

The company was estimated to have a 12-percent soy crushing market share last year.

China Agri currently has an oilseed crushing capacity of 4.86 million tonnes and refining capacity of 1.17 million tonnes. Its oilseed processing business accounted for 64 percent of total revenue.

China Agri's net income for the six months to June more than doubled to HK$1.69 billion (US$217 million) from HK$615.17 million (US$79 million) a year earlier, thanks to stronger sales of its edible oil.