Any hope that a statement from Kingboard Chemical Holdings might clear up some of the uncertainty surrounding the company was dashed yesterday.
Shares in the maker of paper-based, copper-clad laminates appeared to slide on uncertainty about potential provisions in the March 31, 1996, year-end results.
Upon the request of the stock exchange, the company issued the statement to confirm what the company's position was on the points of uncertainty.
On the face of it Kingboard chairman Cheung Kwok-wing denied the rumours regarding possible provisions relating to inventory and bad debts.
He denied there had been an accounting change at the company regarding the March 31, 1996 results. And he also denied price fluctuations for raw materials and end products over the financial period had any material impact on the company.
In the past few weeks analysts have become worried about their 1996 year-end net profit forecasts for Kingboard after interviews with the company. Analysts alleged they had been told of a $10 million provision on an inventory write down and a $5 million bad debt problem.
All this uncertainty saw the share price fall to 98 cents on Monday, having traded at a daily average of $1.384 over the previous month, according to Bloomberg.