Huafang Co. Ltd. said its second-quarter normalized net income amounted to 2.8 million yuan, a decline of 53.9% from 6.1 million yuan in the year-earlier period.

Normalized net income excludes unusual gains or losses on a pre- and after-tax basis.

The normalized profit margin declined to 0.5% from 1.1% in the year-earlier period.

Total revenue increased 6.9% year over year to 574.8 million yuan from 537.7 million yuan, and total operating expenses rose 7.7% on an annual basis to 564.4 million yuan from 524.3 million yuan.

Reported net income fell 52.9% from the prior-year period to 4.4 million yuan, or 1 fen per share, from 9.3 million yuan, or 4 fen per share.

As of Aug. 17, US$1 was equivalent to 6.40 yuan.