COSCO INTL HOLD<0517> - Results Announcement
COSCO International Holdings Limited announced on 14/5/1999:
(stock code: 517)
Year end date: 31/12/1998
Currency: HK$
Current 16-Month-
Period Period
from 1/1/1998 from 1/9/1996
to 31/12/1998 to 31/12/1997
('000) ('000)
Turnover : 801,307 1,314,792
Profit-Continuing Operations
- Operating Profit/(Loss) : 2,254 (37,395)
- Exceptional Items : (719,009) 38,000
- Discontinued Operations : - -
Total Operating Profit/(Loss) : (716,755) 605
Share of Profit/(Loss) of
Associated Companies : 4,590 883
Profit/(Loss) after Tax & MI : (715,216) (480)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (55.0 cents) (0.1 cent)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (715,216) (480)
Final Dividend per Share : Nil Nil
(Specify if with other options) : N/A N/A
B/C Dates for Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
(1) Pursuant to a board resolution passed on 29th May, 1997, the
Company's accounting year-end was changed from 31st August to
31st December.
(2) The figures reported in the Results Announcement Form submitted
previously for the Last Corresponding Period were adjusted for the
following prior period adjustments:-
Prior period adjustments
Accumulated 1/9/1996 to 1/9/1995 to
as at 31/12/1997 31/12/1997 31/8/1996
HK$'000 HK$'000 HK$'000
Understatement 161,090 10,985 150,105
of anticipated
losses on
construction
contracts
Correction of 18,604 2,019 16,585
overstatement
in accounts
receivable and
turnover
------- -------- --------
179,694 13,004 166,690
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COSCO (Hong Kong) Group Limited ("COSCO (Hong Kong)")
completed the acquisition of Shun Shing Holdings Limited (renamed
as COSCO International Holdings Limited) on 5th March 1997
and became the controlling shareholder. To ensure a smooth transition,
all of the original management and staff of Shun Shing Holdings Limited
and Shun Shing Construction & Engineering Company, Limited ("Shun
Shing Construction") have been retained to continue with the management
of the construction business operations.
The appointment of a new management team was put in place in 1998
and a review of the internal control systems of Shun Shing Construction
was carried out. As a result of this review, it was discovered that
there were deficiencies in management and accounting controls over
contract work in progress, thereby resulting in fundamental accounting
errors being made in recognising profit on incomplete contracts when in
fact there were significant anticipated losses on these contracts. In the
opinion of the current board of directors, the losses on a number of
construction contracts which were tendered by Shun Shing Construction
prior to 5th March 1997 and amounted in aggregate to HK$161 million should
have been fully provided for in the financial periods in which they were
anticipated. In addition it was noted that fundamental errors also
occurred in the recording of accounts receivable amounting to HK$19
million in the prior accounting period through the overstatement of the
value of work done for variation orders on certain construction contracts.
These fundamental errors have been accounted for as prior period
adjustments in the current financial year in accordance with the Statement
of Standard Accounting Practice No. 2.102 issued by the Hong Kong
Society of Accountants.
(3) Exceptional items
1/1/1998 to 1/9/1996 to
31/12/1998 31/12/1997
HK$'000 HK$'000
Provision for diminution in value of (385,000) -
long-term investments
Deficit on revaluation of investment (219,700) -
properties
Provision for potential claims on (52,309) -
certain construction contracts
Provision for diminution in value of (37,000) -
a property development project
engaged by an associated company
Provision for diminution in value of a (25,000) -
property under development project
Claim received in respect of a - 38,000
completed construction contract
------------ ------------
(719,009) 38,000
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For more details, please refer to the press announcement today.
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