Tunrover increased for all five core food products. The year-on-year increase for edible oils/soybean meal was 27.1%; for wineries, 30.6%; for confectionary, 17%; for flour milling, 40.9%; and for trading, 3.9%. Although net profit was down 23.8% for the company’s edible oils/soybean meal business, net profit was up by 52.6% for wineries, 9% for confectionary, 22% for flour milling and 59.7% for trading.
The decrease in net profit for COFCO International and its edible oils/soybean meal business was due to a sharp rise in the price of imported soybeans, continued rise in transportation costs and the effects of the avian influenza outbreak in the first quarter of 2004. Taking advantages of a turn for the better in the market in the second half of 2004, the ratio of sales of two new products, sunflower and safflower oil in retail packaging under the “Zicai” brand, which bring comparatively high gross profit on sales, was increased, and the edible oils/soybean meal business began to turn a profit in the fourth quarter as a result.