Bangkok--Oct 29--Hopewell
Hopewell Holdings Limited yesterday (October 28) announced its
annual results for the 12 month-period ended June 30, 1997.
The Group's loss attributable to shareholders was HK$ 1.696
million, compared with profits of HK$769.19 million in the previous year.
The loss was due to a provision of HK$ 5,000 million against the Group's
expenditure to date on the Bangkok Elevated Road and Train System (BERTS)
which was taken in view of the uncertainly regarding the project, the weak
Thai economy and the devaluation of the Baht.
"This has clearly affected profit for the current year. Without
this exceptional item, profit would have been HK$ 3.3 billion", said Sir
Gordon Wu Ying-Sheung, Chairman and Managing Director of Hopewell.
"If the project gets back on track, the directors expect that this
provision will be reconsidered. Hopewell remains committed to the project
and looks forward to negotiations with the government", he said.
The Company said it would not be proceeding with new investment in
the project in Thailand until all the fundamentals are satisfactory.
Turnover for the period was HK$ 2850 million, compared with HK$
2365 million in the previous year. Loss per share was 39 cents, compared
with earnings of 18 cents in 1995/96.
An exceptional gain of HK$ 2.8 billion was realized from the sale
of a 40 per cent stake in Consolidated Electric Power Asia Limited (CEPA),
which was completed in January 1997 but this was offset by the BERTS
provision.
Hopewell's Board of Directors has recommended a final dividend of
3 cents to make a total dividend for the year of 9 cents, compared with 6
cents the previous year.
"The CEPA saled has strengthened our capital base and represents a
good deal for our shareholders. It's hard to argue against an exceptional
gain of HK$ 2.8 billion in the three years since CEPA was floated", said
Sir Gordon.
Proceeds from the sale have been largely used to reduce the
Group's gearing levels. As at June 30, 1997, Hopewell Holdings corporate
debt/equity ratio level stood at 21.1 per cent, compared with 23.9 per
cent at the end of the previous financial year.
In August 1997, the Company completed a deal to sell its remaining
19.99 per cent of CEPA in return for US$ 150 million plus an 80 per cent
interest in the 1,320-megawatt Tanjung Jati B plant under construction in
Indonesia. The Group received preliminary approval from the Indonesian
government to develop Tanjung Jati C and negotiations on the power
purchase agreement began in September 1997. This would give Hopewell an
eventual total generating capacity of 2,640 megawatts in Indonesia.
Exceptional gains from this sale will be recognised in the interim
results for the first half of the Group's 1997/98 financial year and the
proceeds have reduced gearing levels further. As at August 31, 1997, the
corporate debt/equity ratio stood at 0 per cent.
The Group realised higher revenues from toll roads in the Pearl
River Delta.
Traffic on the 123-kilometre GSZ East Superhighway in the PRC's
Guangdong Province increased 20 per cent during the year and, as of August
1997, traffic flow had increased to 71,000 vehicles daily. A 20 per cent
RMB toll increase was approved in September 1997, which comes on top of a
25 per cent toll increase in September 1996.
Traffic on the 102-kilometre Shunde Roads network also increased
strongly to reach 94,000 vehicles per day, as of August 1997. In May
1997, the Boca Tigris Bridge across the Pearl River was opened and in
September 1997 the first section of the Guangzhou South-East Ring Road
opened.
In the Property Division, rental income from the Hopewell Centre
and other properties contributed $300 million income to the Group.
Hopewell has a land bank of 8,000 square metres in the Wan Chai area of
Hong Kong which it intends to develop.
The Group's 1,026-room Kowloon Panda Hotel in Tsuen Wan, close to
Hong Kong's new airport, had occupancy rates of 80 per cent during the
year, although occupancy rates have fallen since the Hong Kong handover in
line with a general decline in the hotal industry. The Group's 438-room
Grand Hotel Excelsior in Malta will open in 1998. The hotel operations
contributed $125 million income to the Group.
Hopewell Holdings develops and operates large scale infrastructure
projects in Asia including the development of a 379-kilometre toll road
network in China's fast-growing Pearl River Delta region and the
development of a 60-kilometre road and train system in Bangkok, Thailand.
It is constructing power plants in Indonesia and developing transport
infrastructure in the Philippines. The Group also has extensive property
and hotel interests.
Issued by Hopewell Holdings Limited
Contact
Hong Kong : Rosemary Sayer: 909 64432 (Mobile)
Bob Fienberg: 9408-6599 (Mobile)
Mike Wong: 901-69226 (Mobile)
Bangkok : Paterson & Partners (Thailand) Limited Public Relations
Department, (662) 637-0270-9
This press release can be retrieved at
http://irasia.com/listco/hk/hopewell. End.