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Beijing Gehua sees profit plunge 30% due to surging cost

By Wang Xing (chinadaily.com.cn)
Updated: 2009-01-23 12:02

Beijing Gehua CATV Network, one of China's largest cabal TV companies, warned its profit in the first quarter of this year could plunge by 30 percent because of surging costs.

Beijing Gehua said in a statement to the Shanghai Stock Exchange that the company's cost in 2009 could rise faster than its revenue increase because of a surging marketing expenses, higher maintaining fees and changes in tax policy.

It said its revenue in 2008 is estimated to have increased 14.75 percent from 2007 to 1.36 billion yuan ($199 million). But its net profit was expected to decline 25 percent to 262 million yuan.