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.
