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Scandal-battered meat processor Shuanghui to resume trading Tuesday

English.news.cn   2011-04-18 22:48:42 FeedbackPrintRSS

BEIJING, April 18 (Xinhua) -- Henan Shuanghui Investment and Development Co. said Monday that its shares will resume trading on Tuesday, more than one month after a suspension due to a food scandal.

Trading of shares in the listed company of China's largest meat processor Shuanghui Group, has been suspended since March 16, one day after China Central Television reported the Group's subsidiary in Jiyuan City, Henan, used pork tainted with the fat-burning drug clenbuterol in its products.

Clenbuterol is a chemical that can be fed to pigs to make them produce lean meat. The chemical is poisonous to humans and is banned as an additive in stock feed in China.

Shares of Shuanghui Investment and Development Co. fell by the 10-percent daily limit to 77.94 yuan (11.94 U.S. dollars) on March 15. The market expects a 10-percent plunge for at least two consecutive trading days after trading resumes.

The scandal is expected to cost 1.36 billion yuan in business revenue for Shuanghui Group in March, and 1.34 billion yuan for Shuanghui Investment and Development Co, the company said in a statement to the Shenzhen Stock Exchange.

It said the company's net profits are expected to total 265 million yuan to 270 million yuan in the first quarter, up 20 percent to 22.7 percent from the same period of last year. This growth rate is lower than that in the first quarter of previous years, the statement said.

Editor: yan
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