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. 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. 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. It attributed another $365 million loss to the inability of some of its mainland plants to start production due to the lack of working capital, despite its mainland operations achieving a 58 per cent increase in revenue to $388 million during the period. As for last year's results, the company said it made substantial inroads towards improving its final position by trimming the loss to $223.2 million from $1.22 billion, after aggressive cost cutting by a majority of its 34 mainland plants. The company's auditor expressed a disclaimer of opinion for its financial statement for the two years because he was unable to determine its net asset position at the beginning of its financial year and the value of its mainland operations. He also said insufficient information was available relating to the write-off of the company's German subsidiaries. Chairman Siegfried Lee Siu-fung said in May financial and legal due diligence was being undertaken potential investors Shui Hua Development and Enterprises and China Everbright Holdings, which was expected to be completed in mid-June. However, no solid progress was reported in yesterday's results announcement.