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Sanyuan posts increased 2008 profit amid melamine crisis

By Ding Qingfen (chinadaily.com.cn)
Updated: 2009-03-18 10:41

Beijing Sanyuan Food Co (Sanyuan) said that its profit for 2008 surged 87.2 percent from a year ago to 40.75 million yuan, on sales of 1.41 billion yuan, up 28.2 percent.

The company was not named in the contaminated milk scandal that brought down Sanlu, one of the largest milk powder producer and troubled some others, including industry leaders Yili and Mengniu, both of which had predicted losses in 2008. Mengniu said earlier that its 2008 losses could reach 900 million yuan.

In early March, Sanyuan won the bid for part of Sanlu's assets for 616.50 million yuan. The transaction could catapult Sanyuan to the forefront of dairy companies to compete nationally with the crippled big players.