Tomson to sell 25% stake in cement unit

Tomson to sell 25% stake in cement unit
Published: 30 September 2008

Tomson Group’s unit has put up 25 per cnet stake in Shanghai Tomson Guojian Concrete Co., Ltd. for sale at the Shanghai United Assets and Equity Exchange, sources reported. The listing price is RMB 3.47m. Tomson Group didn’t specify the reason for the sale. But the company denied it is because of the sharp fall in its net profit in the first six months of this year since Guojian Concrete only accounts for a small part of the Group’s business.

According to Tomson’s interim report, its pre-tax profit in the first half of 2008 dropped to HK$33.24m from HK$211.45m in 2007, a YoY decrease of 84 per cent. Tomson ascribed the profit fall to the unconfirmed sales income. Tomson Group is the first Hong Kong property developer to invest major money in the high-end property projects in Shanghai. Shanghai Tomson Guojian Concrete was established in 1994 with a registered capital of US$6m.