Losses at red chip Cosco International Holdings widened in the first six months of the year to a net $76.98 million after provisions of up to $87 million for securities investments and property projects. The Hong Kong-listed property and construction arm of state-run China Ocean Shipping (Group) Co (Cosco) was hit by falling property and stock prices. Cosco International said a $35 million provision was made against the fall in value of listed investments, $37 million for the dwindling price of a mainland property development project and $15 million to cover the potential risk of a liquidated damage claim on 'certain construction projects'. In the previous six-month period - from September 1, 1996, to February 28 last year - the company lost a net $16.77 million. The company changed its accounting year-end date from August 31 to December 31 last year. Cosco International reported a $11.71 million operating profit in the first half of this year against a $17.16 million loss in the corresponding period. Turnover rose 31 per cent to $428.77 million. Basic losses per share were 6.3 cents a share against losses of 2.1 cents a share previously. No interim dividend would be paid. The directors said 'serious deficiencies' had been discovered in management and accounting controls prior to Cosco taking control of the company in March last year. Fundamental accounting errors were made in prior periods but these errors had since been accounted for. The firm said it was 'extremely cautious' about investments in the present conditions.
