August 29 -- Sichuan Shengda Forestry Industry (002259) posted a 49.56-percent fall in net profit in the first half of 2011 to 7.61 million yuan despite a 50.52-percent increase in revenue to 414 million yuan, reports the National Business Daily, citing a company filing. The profit drop was blamed on rising costs of financing, labor and raw material, as well as intense competition.

Shengda Forestry plans to spend 286 million yuan to distribute eight shares for every 10 shares held. The company’s total capital will increase to 643 million shares from 357 million shares.

According to an earlier source, 181 million shares of Shengda Forestry were tradable from July 18, 2011, equivalent to 50.75 percent of the listed company’s total capital. Of 181 million tradable shares, Sichuan Shengda Forestry Industry Group holds 150 million shares, while chairman of the board Jiang Changzheng holds 15.93 million shares; deputy chairman Jing Tao holds 6.38 million shares; board member and general manager Xiang Zhonghua holds 4.78 million shares; general manager Zhang Changlin holds 3.19 million shares; deputy general manager and chief financial officer Jiang Shan holds 280,000 shares, and financial supervisor Jiang Changhua also holds 280,000 shares.

The executives in Shengda Forestry Industry together hold 107 million shares, equivalent to 30.02 percent of total capital, so they will be the biggest beneficiaries of the aforementioned dividend distribution plan.

Source:capitalvue