NPH auditor issues report

PUBLISHED : Thursday, 09 September, 1999, 12:00am
UPDATED : Thursday, 09 September, 1999, 12:00am

Loss-sustaining Chinese-medicine company NPH International Holdings is among the latest in a growing number of Hong Kong listed companies with a qualified report from its auditors.

Ernst & Young issued a disclaimer on NPH's financial statements for the year to March 31 because of possible limitations of available evidence in relation to a stock-option transaction and two loans receivable worth a combined $99.36 million, provided for in the current year, and proprietorship of a mainland property.

It also cited incomplete trading records for petrochemical operations and fundamental uncertainty over whether the company would continue operations.

Ernst & Young was appointed in July as the company's auditors after Arthur Andersen resigned from the job.

Market observers said the company's financial state of affairs would deter potential buyers interested in seeking a backdoor listing for the development of the Chinese-medicine 'port'.