Three firms controlled by controversial acquisition maker Charles Chan Kwok-keung have posted substantially weaker interim results, hurt by investment losses and the weak construction market. Mr Chan's flagship investment holding firm ITC yesterday unveiled a net loss of HK$99.2 million in the six months to September 30, much worse than a loss of HK$6.95 million last year. Turnover fell 41.68 per cent to HK$13.72 million, mainly because of a decrease in interest income. Its bottom line was hit by a HK$16.81 million impairment loss recognised on investment securities, which had been received by the company as repayment of a shareholder's loan advanced to an associate. A HK$67.76 million loss at associate companies also added to the losses. The associates included entertainment firm Star East Holdings and media firm M Channel. ITC subsidiary Paul Y ITC Construction Holdings reported a net loss of HK$31.77 million in the half-year to September 30, compared with a profit of HK$55.26 million last year. Turnover fell 19.03 per cent year on year to HK$1.98 billion amid fierce competition in a market hurt by a weak economy and a cut in subsidised housing projects. An 82.37 per cent year-on-year rise in profit contribution from associates, including Australia-listed engineering and infrastructure firm Downer EDI, to HK$72.96 million softened the loss. Meanwhile, Hanny Holdings reported a net loss of HK$144.89 million in the six months, compared with a profit of HK$2.93 million in the same period last year. Turnover rose 13.13 per cent year on year to HK$1.98 billion. Its bottom line was hurt by a HK$62.29 million unrealised holding loss on investments. It had net cash of HK$155.5 million on September 30 and borrowings of HK$601.8 million, with HK$592.1 million due within a year. In late October, Mr Chan backed down from a proposal to buy himself non-core assets of Paul Y at a 90.1 per cent discount to net asset value. ITC then offered to buy shares it did not already own in Paul Y at 30 HK cents each, a 42.9 per cent premium to the closing price but 89.6 per cent discount to net asset value.
