Red chip Founder Holdings posted a greater than expected loss of HK$233 million in the year to December 31. A year earlier the company had a loss of HK$165.69 million. The consensus forecast, according to Barra Global Estimates, was a net loss of HK$84.5 million. Founder president Alan Cheung Shuen-lung attributed the bigger loss to restructuring and an increase in non-recurring expenses from provisions for bad debt, assets revaluation and depreciation. 'This year will definitely be better as we can see some of the projects begin to yield earning contributions,' he said. Founder told analysts it would be able to book a HK$121 million profit this year, guaranteed by Beijing Order, which the company acquired in February. Last year, turnover dropped 26.8 per cent from a year earlier to HK$1.58 billion. Loss per share increased to 23 HK cents, compared with 21 HK cents in 1998. The company did not recommend a dividend. Meanwhile, Founder announced it would partner with Yahoo! to take over Management Investment & Technology (Holdings) (MIT) in a HK$532.8 million back-door listing deal. Founder will sell its Internet-advertising unit Founder Data to the smoke-detector maker in exchange for HK$439.56 million or 39.62 per cent of MIT's enlarged share capital. Yahoo! will transfer its interest in on-line advertising unit Datacom to MIT for HK$93.24 million, which will be settled by issuing 11.41 per cent of MIT's enlarged shares to Yahoo!. Shares in Founder, which had been suspended since last Thursday, plunged 90 cents or 17.3 per cent to close at HK$4.30 after it resumed trading yesterday. MIT, by contrast, finished 40 per cent higher to close at $1.96, after it reached intra-day high of $2.60. It traded at $1.40 on May 4, before its suspension. 'Investors are de-rating high valuation technology stocks which have mainland exposures,' said Kenny Lau Siu-man, technology analyst at SG Emerging Markets Equity Research. Investors were concerned Yahoo!'s interest in the joint venture with Founder will be further diluted.