Troubled property developer Mandarin Resources Corp has reported a loss of $4.3 million for the six months to December last year due to provisions for unrealised losses of $20 million in securities investments made by its subsidiaries. The company, 73 per cent owned by provisional legislator Chim Pui-chung, lost $6.4 million during the same period in 1996. Losses per shares were 24.6 cents compared with $36.7 cents in 1996. No dividend will be paid. The company, which has been suspended from trading for almost 14 years, said it lost $20.29 million on securities investments held by its subsidiaries. Since June 1996, Mandarin Resources has been the subject of winding-up proceedings brought by the Securities and Futures Commission (SFC), while John Lees and Desmond Chiong, of Ferrier Hodgson and Marfan, have been appointed provisional liquidators. Mr Lees said although Mandarin Resources was controlled by the provisional liquidators, its subsidiaries were not subject to the winding-up petition. Mr Lees said the winding-up petition could not be heard before September as Chim was facing criminal charges over an alleged conspiracy to defraud Mandarin's shareholders. The SFC launched the winding-up petition claiming Chim misused company assets, violated regulations and unfairly treated minority shareholders in the course of several transactions. Chim resigned as chairman of the company in January last year but remains Mandarin Resources' largest shareholder. Chim said the provision was due to the market slump last October. 'It was a tough time for securities investment in the second half last year,' he said.
