May 17, 2013 (China Knowledge) - China Resources Enterprise Ltd<0291>, an investment arm of China Resources Group, said yesterday that its net profit plunged 61.42% YoY to HK$512 million in the first quarter of this year.

Earnings per share were RMB 0.21 during the period.

The company said that the sharp decline in net profit was due to a significant drop in earnings from its retail segment and higher labor cost.

Earnings from retail business fell 60.44% YoY to HK$525 million in the period as a result of China's control on government consumption. The beer segment suffered a narrowed loss of HK$23 million.

China Resources Enterprise saw its turnover rise 8.41% from the same period of last year to HK$35.15 billion in the first three months.