Tianjin Bohai sets out on new track

PUBLISHED : Wednesday, 29 December, 1999, 12:00am
UPDATED : Wednesday, 29 December, 1999, 12:00am

Tianjin Bohai Chemical Industry (Group) may become the first H share to change its core business.

The company, one of the mainland's largest chemical producers, said yesterday it was in preliminary negotiations to acquire high-technology and road projects.

Investors reacted positively to the news and the H share gained 16 per cent yesterday to close the day at 58 HK cents.

Unlike conglomerate-like red chips, which involve a number of sectors, it is rare for an H share to move beyond its core business due to the country's stringent industrial policies.

Tianjin Bohai reported the biggest loss among the 41 H shares last year, as it sank into the red to the tune of 608.05 million yuan (about HK$567.43 million).

The company, which produces basic chemical materials, reported it had repaid this year's portion of principal and interest due on a US$10 million syndicated loan.

'Based on the financial position of the company, there will be no problem in repaying the principal and interest of the balance of the syndicated loan in accordance with the loan agreement,' the company said.