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Siu-Fung blames loss on German restructure

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SCMP Reporter

Debt-laden Siu-Fung Ceramics has revealed it lost $1.44 billion in the two years to December last year, blaming the disappointing result on the huge costs involved in restructuring its German subsidiaries.

The aggregate figure included a $223.2 million loss last year and another $1.22 billion in 1996, the first time the scale of its problems has been officially confirmed.

These results compared to a $119.34 million attributable profit during the nine months to December 1995, and a record $412.24 million achieved in the year to March 1995.

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The company did not bring any fresh news about the progress of its ongoing debt restructuring, only reiterating 'the process had reached a decisive stage'.

It also gave no time-frame as to when trading in the company's shares would be resumed.

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A majority of the hefty 1996 loss came from a $615 million write-off of its German subsidiaries, some of which were liquidated by the German Government while others were wound up by the company voluntarily.

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