Write-downs add to 'difficult' term

PUBLISHED : Monday, 24 May, 1999, 12:00am
UPDATED : Monday, 24 May, 1999, 12:00am

Shenzhen International Holdings has revealed a $447.08 million net loss for the year to December 31, including one-off losses of $391.63 million.

The company - with operations ranging from glass, optical products to ceramic tiles and property investment - posted a net profit of $26.08 million the previous year.

Shenzhen International's exceptional losses included a $160.60 million write-down in the value of long-term investments and a $135.98 million write-down in goodwill.

It also wrote-down the value of certain properties held for sale by $28.23 million, bad and doubtful debts of $18.09 million, and provisions for the diminution in values of associated companies by $48.71 million.

Chairman Chen Xiaoxiong described the year as 'difficult' for the firm.

Shenzhen International made an operating loss before exceptionals of $17.04 million.

Meanwhile, turnover was $178.41 million, a 49 per cent increase from the previous year.

A final dividend was not recommended.

Losses per share were 11.85 cents, from earnings per share of 1.12 cents the previous year.

'Operating loss was mainly attributable by the unforeseeable deterioration of the performance in the overall economy,' Mr Chen said.