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2004-6-23 09:57:00 a.m. HKT, XFNA
Hong Kong-listed Tai Sang Land closes down US unit
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HONG KONG (AFX-ASIA) - Tai Sang Land Development Ltd (89.HK) said it will
close down its US-based unit Montgomery Golf Corp, which has been incurring
losses over the past few years.
The unit will issue a notice of winding up to its creditors and suppliers
under applicable US laws, the company said in a statement.
""The US subsidiary's mode of operation has been under review with an
objective to reduce further loss to the company and its subsidiaries,"" it
said.
""The board is of the opinion that the prospect of the US subsidiary's
business is not promising and anticipates that it is unlikely to make any
contribution to the group's profits in the foreseeable future,"" it said.
The decision was made despite an increase in the US unit's turnover which
accounted for 6.1 pct of the company's total revenue in 2003.
As of April 2004, the subsidiary's total asset value stood at 1.38 mln
usd.
Tai Sang Land is expected to write off a maximum of 1.1 mln usd in its
books as a result of the move.
The US unit, set up in 2001, was engaged in property investment which
included property rental, finance, distribution of golf teaching units and
sports teaching software.
It acquired Swing solutions in the same year, a digital video equipment
and software tools provider for golf teaching in the US.
(1 usd = 7.8 hkd)
leonora.walet@afxasia.com
lw
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