Bid costs fuel losses at Nam Pei Hong
CHINESE medicine retailer Nam Pei Hong (Holdings) says exceptional expenses because of the failed takeover bid by Victoria Montreux added to its net loss of $3.2 million for the six months to September 30.
Profit for the previous corresponding period was $27,000.
Earnings per share of 0.02 cent plunged to losses of 2.63 cents, and no interim dividend was declared.
Although turnover increased 16.4 per cent to $79.68 million from last year's $68.42 million, Nam Pei Hong said the cost of financial advisers for shareholders and warrant-holders during the takeover bid was up to $1.4 million.
The company also incurred a loss of $161,000 on disposal of fixed assets on closure of its retail outlets.
At the end of September the company operated 24 retail outlets, including one at Sha Tau Kok near the border and another in Macau. Four are owned by the company.
Nam Pei Hong plans to open a number of retail outlets in China next year and is searching for suitable locations.
To improve its profits and working capital in the second half, the company said it would consider selling part of its property holdings which were unsuitable for development of the business.