Fu Hui Jewellery Co (HK) saw its net losses swell to $124.15 million for last year as it announced a share placement to raise $45.56 million. Although the company's turnover surged 177 per cent to $500.69 million last year, it recorded an operating loss of $47.54 million, compared with a loss of $25.43 million a year ago. It also posted exceptional losses of $82.59 million, compared with $28.90 million previously, arising from provisions for slow-moving inventories. Losses per share were 32.41 cents, compared with 11.96 cents a year ago. No dividend will be paid. Chairman So Sik said the turnover growth mainly came from its pure gold trading business but that it could not offset the decrease in contribution from its jewellery and gemstone operations. Fu Hui reduced its stake in an urban redevelopment project in Fuzhou, in Fujian province, to 9.9 per cent from 30 per cent, generating an exceptional gain of $1.85 million. 'In general, the board of directors has now reached a consensus to reorganise assets currently owned by the group,' Mr So said. Fu Hui has agreed with SocGen-Crosby securities for a share placement of 75.93 million shares, or 19.82 per cent of its existing share capital, at 60 cents each. The company will earmark half the proceeds to repay short-term borrowings and the balance for general working capital purposes. Its major shareholders, Fujian Jewellery Import and Export Corp and Mr So, will lower their respect shareholdings to 21.53 per cent and 24.89 per cent from 25.79 per cent and 29.83 per cent, after the placement is completed on Friday.