Sunevision Holdings, the technology arm of Sun Hung Kai Properties, remains upbeat over the bandwidth retail market despite writing off its entire stake in a venture capital project with Singapore Telecommunications (SingTel). The company made a non-cash provision of HK$425 million for the full year to June 30, with more than a quarter of it going to undersea cable operator C2C, in which it invested US$20 million for a 4 per cent stake in 2000. 'As a conservative investor, we just follow the major shareholder's [SingTel] practice,' managing director Sheridan Yen said. SingTel, Singapore's dominant mobile-phone service provider, wrote off its entire S$348 million (HK$1.55 billion) equity investment in C2C in the fiscal fourth quarter to March 31 this year because of its poor performance. In the first quarter to June 30, C2C posted a loss of US$24 million on revenue of $15 million. Sunevision said the provision was also due to a significant oversupply in global and regional bandwidth and the downturn in bandwidth demand. However, Mr Yen said the falling bandwidth price had encouraged companies to outsource their projects, which had increased business opportunities. Analysts saw the provision - which also covered $50 million for a valuation deficit on investment properties and $123 million on the revaluation of internet data centre buildings - as a long-term positive. Wallace Cheung at DBS Vickers Securities said the one-off costs would clear Sunevision's balance sheet. 'A cleaner balance sheet and possible dividend payment add attraction,' he said. 'We now expect Sunevision to distribute a dividend in 2004, one year earlier than we originally assumed.' Sunevision shares closed flat at $2.025 yesterday. They have soared 100 per cent over the past year. Sunevision had a total equity technology investment of $166 million in more than 20 venture capital projects, of which one or two would go public this financial year, Mr Yen said. With $1.2 billion cash on hand, the company is also eyeing acquisition opportunities in data centre and information technology-related businesses. The company reported a net loss of $340.77 million for the full year, compared with a $633.85 million loss a year ago. It recorded an operating profit of $74 million excluding finance costs and before one-off costs. Total turnover rose slightly to $242.77 million, up from $240.54 million a year ago. Its core business, the iAdvantage data centre, had an occupancy rate of 60 per cent, which is expected to climb to 62 per cent this quarter. Mr Cheung said Sunevision needed to raise capacity at its data centres to cope with new demand from China's rapidly growing financial industry.