Source - SMW
Aquatic Foods Group - a leading Chinese marine foods and seafood processor and producer - posts an operating profit of RMB50,481,000 for the six months to the end of June, down from RMB102,218,000 last time

Revenues of RMB418,988,000 were down from RMB443,953,000 a year ago and pre-tax profits fell to RMB49,412,000 from RMB101,476,000.

Chief executive Li Xianzhi said: "Despite the fall in profitability, AFG has performed credibly in what remains a challenging economic environment.  Gross margin has stabilised, volumes continue to increase, and we have made continued progress in building new sales channels.  

"As a result, AFG's business remains profitable and cash generative.  The Directors have resolved to pay an interim dividend of 0.2p per share but will review the full year dividend in light of trading and market conditions at that time.

"The directors expect the current challenging market conditions, reflected in cost inflation pressures combined with softening product pricing, to continue in the near term though the Board is pleased to note that gross margins achieved by the Company have stabilised. AFG's strategy in a competitive market and in the face of these pressures is to continue to focus on operational efficiency, developing new sales channels including supermarkets, increasing sales to our existing distribution network, expanding our distribution network and increasing our focus on export markets. 

"AFG will also focus on advertising and promoting awareness of the 'Zhenhaitang' brand standards.  In particular, the Company is seeking to build on the success of its supply contract with Yihee International Corporation, the extension of which is expected to be considered during Q4."

At 9:17am: (LON:AFG) Aquatic Foods Group Plc share price was -4p at 13.5p