The major shareholder of Asia Financial Holdings, which has reported a net loss of HK$771.3 million for last year, has given up the idea of privatising the company and will instead look at mergers and acquisitions amid the market downturn, a senior executive said.
The company, which has insurance and pension businesses in Hong Kong and invests in medical companies and hospitals in Asia, slid into a deficit last year from a HK$520.58 million profit in 2007.
This is the first time the company has posted a loss.
Loss per share was 73.6 HK cents. The company will pay a final dividend of 1 HK cent per share.
Asia Financial president Bernard Charnwut Chan said the loss stemmed from a HK$404.5 million net deficit incurred in stocks and fund investments.
Mr Chan said 73.6 per cent of these were paper losses arising from the mark-to-market value of the portfolio.
However, the core insurance business recorded 15 per cent profit growth, he said.
