CNT GROUP<0701> - Announcement
The Stock Exchange of Hong Kong Limited takes no responsibility for
the contents of this announcement, makes no representation as to its
accuracy or completeness and expressly disclaims any liability
whatsoever for any loss howsoever arising from or in reliance upon
the whole or any part of the contents of this announcement.
CNT Group Limited
(Incorporated in Bermuda with limited liability)
Announcement
This announcement is made pursuant to the requirements of
Practice Note 19 of the Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited.
The aggregate amount of the financial assistance, and guarantees
given for banking facilities granted to the affiliated companies of
CNT Group Limited (the `Company') by the Company and/or its
subsidiaries (the `Group') as at 17 June 1999 amounted to
approximately HK$289,208,000 which represented approximately 35.5% of
the Group's consolidated net asset value as at 31 December 1998.
Details of the advances to, and guarantees given for the benefits of,
the affiliated companies of the Company as at 17 June 1999 are as
follows:
As at 17
June
1999
Affiliated Percentage Advances Guarantees Guaranteed
companies of equity given loans
held by the drawn
Group
% HK$'000 HK$'000 HK$'000
Champion 50 23,320 35,000 35,000
Rich
Investment
Limited*
CNT Tin 50 30,109 19,500 16,014
Plate
Limited*
Happy Trade 50 35,380 11,250 11,250
Limited*
Liaoyang 50 37,121 - -
Beiyang
Realestate
Development
Company
Limited
Supreme 50 14 - -
Luck
Limited
Becker 49 168 - -
Industrial
- China
Paint
Limited
Becker 30 472 - -
Acroma -
China Paint
Company
Limited
Techvast 26.9 6,780 - -
Limited
Norinco-MCP 25 - 2,000 1,000
Company
Limited
Guangzhou 20# - 88,094 88,094
Pacific ------- ------ ------
Tinplate
Company
Limited
133,364 155,844 151,358
======= ======= =======
* The New China Hong Kong Group Limited, a company in creditors'
voluntary liquidation, is the remaining 50% beneficial shareholder of
these affiliated companies. The bank loans granted to these
affiliated companies were in default, and the guarantees for the
relevant bank loans were call upon. Accordingly, the Group made
provisions of HK$62,264,000 for these obligations in the results for
the year ended 31 December 1998. Appropriate provisions have also
been made in the results for the year ended 31 December 1998 to
reflect the recoverability of the advances to these companies.
# This represents percentage shareholding held by CNT Tin Plate
Limited, a 50% owned associated company of the Company.
The Group used internal resources and/or bank borrowings to finance
the advances to the affiliated companies. The advances are unsecured,
interest-free and have no fixed terms of repayment.
Except for the guarantees given for banking facilities extended to
Guangzhou Pacific Tinplate Company Limited which are joint and
several guarantees, all the guarantees given for the benefits of the
affiliated companies as disclosed above are several and in proportion
to our shareholding interests in such companies.
There are no further committed capital injection, advances, loans or
guarantees given by the Group for the benefits of the affiliated
companies of the Company.
By order of the Board of
CNT Group Limited
Philip Tsui Ho Chuen
Executive Vice Chairman
Hong Kong, 23 June 1999
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