/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/040202.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, February 2, 2004, Vol. 7, No. 22 Headlines A U S T R A L I A PASMINCO LIMITED: Discloses Second Quarter Production Results VILLAGE ROADSHOW: Pushes For Third Bite at Buyback Cherry VILLAGE ROADSHOW: Appeals to Supreme Court C H I N A & H O N G K O N G BLACKFRIARS LIMITED: Faces Winding up Petition CAPITAL YEARS: Schedules Winding Up March 17 WELL KINGDOM: Winding Up Hearing Pending I N D O N E S I A BANK LIPPO: Expects Net Profit for 2004 BANK PERMATA: Sale Likely to Take More Than a Month J A P A N DAIWA SECURITIES: Liquidates European Unit DIAMOND HOTEL: Hotel Management Firm Enters Bankruptcy FUJITSU LIMITED: Returns to Profit in December Quarter HITACHI LIMITED: Former Employee Wins 163M in Patent Dispute JAPAN AIRLINES: Jet Defects Cost Y500M in Lost Revenue NISSAN MOTOR: Worldwide Car Sales Up 12% in Third Quarter SKYMARK AIRLINES: New Chief Plans Computer System Upgrade SIRAGASI GOLF: Golf Course Starts Rehabilitation Proceedings TOSHIBA CORPORATION: Board Nominates Tadashi Okamura as CEO TOSHIBA CORPORATION: UBS Ups Rating to "Neutral 2" K O R E A SK CORPORATION: Narrows 4Q04 Net Loss to US$62.71M SSANGYONG MOTOR: Union Schedules Wednesday Strikes M A L A Y S I A BUKIT KATIL: Posts Production Figures for December 2003 HAP SENG: Issues Cancellation of Treasury Shares OILCORP BERHAD: Post Changes in Director's Shareholding TANJONG PUBLIC: Posts Disposal of Shares P H I L I P P I N E S FAIRMONT HOLDINGS: RTC Dismisses Stock-rigging Case Against Tan MANILA ELECTRIC: Projects $24M Cash Deficit in First Quarter NATIONAL STEEL: Creditors Seal Pact With Global Holdings PHILIPPINE LONG: Projects FY03 P12.8B Net Profit S I N G A P O R E CHARTERED SEMICONDUCTOR: Unveils Summary of 4Q03 Performance DURABEAU CONSTRUCTION: Creditors Meeting Set for February 10 GOLDENLITE INVESTMENT: Issues Winding Up Order Notice JUDIS MONETA: Releases Winding Up Order Notice MULTI-CHEM: Unveils Balance Sheet Results T H A I L A N D EMC POWER: Posts Changes in Paid Up Capital EMC POWER: Posts Changes in Director's Board RAIMON LAND: Clarifies FY03 Operating Results RAIMON LAND: Releases Resumption of Trading Notice - - - - - - - - ================= A U S T R A L I A ================= PASMINCO LIMITED: Discloses Second Quarter Production Results ------------------------------------------------------------- Production from the Pasminco Ltd.'s operations was strong during the December quarter with further steps taken to restructure the group's business and to reduce operating costs. Highlights (a) Pasminco achieved strong production results for the December 2003 quarter, higher than both the corresponding quarter in 2002 and the previous quarter. (b) Total production for the financial year to date was comparable to the same period the previous year. (c) Production of lead concentrates at the Century mine and zinc metal at both the Hobart and Budel smelters improved significantly in the quarter just completed. (d) The new metal marketing arrangements with Trafigura Beheer B.V. commenced on January 1, 2004. This new arrangement is Expected to deliver the company considerable benefits in Terms of lower working capital levels, reduced costs and Improved returns. (e) The company continued to exceed targets set under its group wide cash generation project. Australian dollar metal prices have also improved from low levels experienced in the middle of 2003. To view full copy of this press release, click http://bankrupt.com/misc/pasminco_limited.pdf VILLAGE ROADSHOW: Pushes For Third Bite at Buyback Cherry --------------------------------------------------------- According to The Age, Village Roadshow has abrogate on a pledge not to make shareholders vote on its preference share buyback a third time, and has asked the Takeovers Panel to order a fresh poll. The film production company alleged that mystery shareholder Boswell Filmgesellschaft - the Munich-based company that seems to be out to thwart Village's controversial $362 million share buyback - had breached the Corporations Act by failing to disclose information on its interest in Village shares. The Takeovers Panel filed a notice with the stock exchange yesterday, including an excerpt from Village's application that said: "An option to the panel would be to order that the poll on the buyback resolution be reconducted at a reconvened general meeting, with the persons behind Boswell prohibited from voting against the resolution." Last November, after the Supreme Court of Victoria had dismissed Village's first buyback scheme, managing director Graham Burke told The Age that shareholders would not have to endure a third vote. Mr. Burke also said at the time that the buyback debacle had cost shareholders "north of $1 million in legal expenses". That was even before the appeal process had begun. But Mr. Burke added that the dispute had become "a matter of principle" and "money's not everything". Shares in Village slipped 3› to $1.68. Its preference shares were steady at $1.09. VILLAGE ROADSHOW: Appeals to Supreme Court ------------------------------------------ Village Roadshow Limited said the Registry of the court of Appeal of the Supreme court of Victoria has advised that the Appeal against the orders of Justice Mandie in respect to the original Scheme of Arrangement in respect of the buy back of the Company's A class Preference will be heard on February 18, 2004. ============================ C H I N A & H O N G K O N G ============================ BLACKFRIARS LIMITED: Faces Winding up Petition ---------------------------------------------- The High Court of Hong Kong will hear on Februry 25, 2004 at 9:30 A.M. the petition seeking the winding up of Blackfriars Limited. University Heights Holding Limited at Top Floor, Chinachem Golden Plaza, 77 Mody Road, Tsimshatsui East, Kowloon, Hong Kong filed the petition on December 16, 2003. Fork Kwan & Company represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Ford Kwan & Company at Rooms 1202-1206, 12th Floor Wheelock House, Central Hong Kong. CAPITAL YEARS: Schedules Winding Up March 17 -------------------------------------------- The High Court of Hong Kong will hear on March 17, 2004 at 9:30 A.M. the petition seeking the winding up of Capital Years International Limited. Bank of China (Hong Kong) Limited whose registered office is situate at 14th Floor, Bank of China Tower, No. 1 Garden Road, Central, Hong Kong filed the petition on January 9, 2003. Chow, Griffiths & Chan represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing Chow, Griffiths & Chan at Rooms 1902-4, 19th Floor Hang Seng Building, 77 Des Voeux Road, Central Hong Kong. WELL KINGDOM: Winding Up Hearing Pending ---------------------------------------- The High Court of Hong Kong will hear on February 18, 2004 at 9:30 A.M. the petition seeking the winding up of Well Kingdom International Limited. Ho Lin Yau of Room 1309 Po Chi House, Po Lam Estate, Tseung Kwan O, New Territories, Hong Kong filed the petition on December 8, 2003. Tam Lee Po Lin, Nina represents the petitioner. Creditors and other interested parties are encouraged to attend the hearing. They only need to notify in writing am Lee Po Lin, Nina at Hopewell Centre 183 Queen's Road East, Wanchai Hong Kong. ================= I N D O N E S I A ================= BANK LIPPO: Expects Net Profit for 2004 --------------------------------------- Despite the Rp 516 billion losses last year of PT Bank Lippo they are certain to gain profit this year. According to the Asia Pulse, in February the government will dispose of 52 percent of the banks shares to Swissasia consortium. Chief Director of PT Bank Lippo, Joseph Luhukay said that the bank is expected to book a net profit because of the enforced collateral assets that has been sold. In 2004, Luhukay added, Bank Lippo would also increase its loan to deposit ratio (LDR) from 22 per cent in 2003-below the average ratio of 50 per cent in the banking industry-to 30 per cent. Luhukay confided that Bank Lippo's management had also asked for tax relief to Minister of Finance because the bank's AYDA bank were two times imposed by tax when the assets were transferred and sold. He admitted he made the direct request to the Finance Minister last January 21, 2004. Deputy Chairman of IBRA for Administrative and Working Support Junianto T. Prijono said the agency is worried about the possibility of the banks performance because it had lost IDR515.9 billion due to its tax obligation. In the meantime, BI's Licensing and Banking Information Director Siti Ch Fadjrijah stated that they will be conducting another fit and proper test on Lippo's board of directors although previously they have passed the test. She said that BI had received documents from IBRA to conduct fit and proper test on Swissasia. But, she didn't know when the test would be conducted. BANK PERMATA: Sale Likely to Take More Than a Month --------------------------------------------------- The Indonesian Bank Restructuring Agency (IBRA) admitted that it might not be able to conclude the sale of a controlling stake in Bank Permata by the time its term expires next month. IBRA Deputy Chairman I Nyoman Sender said, that the succeeding institution would then carry out the sale of Bank Permata, which is to be set up at a later date. "We (IBRA) will definitely run the divestment process. But, if the current one-month period proves to be insufficient, then the process will be continued by the new agency," said Sender, indicating the institution, as yet unestablished, which is to take over from IBRA and manage the unsold assets. IBRA's closure is scheduled for Feb. 27. The new institution will be under the supervision of the office of the State Minister for State Enterprises. IBRA planned to complete the sale of a 71 percent stake in Permata before Feb. 27, with less than a month left to its term, the sale process has not begun, as the agency has to seek approval from the House of Representatives. On the other hand, IBRA is also finalizing the sale of a majority stake in Bank Lippo. Over the past two years, it has already sold majority stakes in other banks under its supervision: Bank Central Asia (BCA), Bank Niaga, Bank Danamon and Bank Internasional Indonesia (BII). Permata was formed two years ago from a merger of five ailing banks controlled by IBRA: Bank Bali, Bank Universal, Bank Arthamedia, Bank Prima Express and Bank Patriot. It is the 10th largest lender in the country and currently boasts assets of around Rp 30 trillion (US$3.5 billion). Meanwhile, Sender has a strategic plan of selling 51 percent of the bank while the remaining 20 percent stake is to be sold via block sale and drip sale. IBRA holds a 91.3 percent stake in the bank. Sender said the agency was hopeful that a hearing with the House could be held soon to help kick off the sale process. ========= J A P A N ========= DAIWA SECURITIES: Liquidates European Unit ------------------------------------------ Daiwa Securities Group Inc. decided to cease business of Daiwa Europe Property Plc, the Company's consolidated subsidiary, and to start procedures of capital reduction and liquidation. This decision was resolved at the meeting of the Company's Board of Directors today. Daiwa Securities Group has engaged in the office rent business through a building held by DEP in London. The Company has made the above decision following completion of sales of this building according to its corporate strategy to focus our resources on securities-related business. The building is reflected on the Company's balance sheet as of December 2003 as 'Other investments' being categorized as an investment property to the amount of 27.6 billion yen. The effect of sale of the building in January and the subsequent decision to liquidate DEP to our consolidated financial conditions and operating results for March 2004 are estimated as follows: With respect to the effect on the Company's income statements, the sale will result in extraordinary gains (gain on sale of fixed assets) of 0.8 billion yen while the liquidation will result in extraordinary losses (including foreign exchange losses) of 4.0 billion yen. We estimate extraordinary losses from this operation to total 3.2 billion yen. With respect to the effect on net assets of the Company's consolidated balance sheet, retained earnings would be reduced by the same amount, 3.2 billion yen. On the other hand, by canceling DEP's unrealized foreign exchange losses of 5.1 billion, which had been deducted from the Company's net asset as 'foreign exchange translation adjustment', we estimate that the Company's consolidated net asset would increase by 1.9 billion. As to the effect on the Company's non-consolidated operating results, it is estimated that a gain on liquidation of a subsidiary of 6.1 billion yen would be realized when the Company collects its investment in DEP in or after FY March 2005. *The effect described above is estimated based on current information and is subject to the fluctuation of foreign exchange rates in the future. Tax effects, which might increase net profit and net assets for the current fiscal year, is not being considered. Summary of the Subsidiary Company Name: Daiwa Europe Property plc Address: London, United Kingdom Date of Incorporation: June 1990 Business: Property management (office Rent business) Total assets: 35.7 billion yen (as of December 2003) Operating results: Ordinary income: 1.8 billion yen Net income: 0.7 billion yen (as of FY 2002) Daiwa Securities Group Inc.'s total assets decreased by 16,794 million yen to 9,486,031 million yen, and total liabilities decreased by 63,223 million yen to 8,743,825 million yen. On assets side, receivables on collateralized securities transactions increased by 859,711 million yen while trading assets decreased by 946,093 million yen. On liabilities side, trading liabilities and bonds increased by 782,596 million yen and by 212,940 million yen, respectively, while payables on collateralized securities transactions and short-term borrowings decreased by 642,906 million yen and 338,558 million yen, respectively. Contact: Public Relations Dept. Ms. Takazawa (Tel: +81-3-3243-3177) DIAMOND HOTEL: Hotel Management Firm Enters Bankruptcy ------------------------------------------------------ Diamond Hotel Co. Ltd. has been declared bankrupt, according to Tokyo Shoko Research Limited. The hotel management firm located at Chiyoda-ku, Tokyo has 180 million yen in capital against total liabilities of 30.172 billion yen. FUJITSU LIMITED: Returns to Profit in December Quarter ----------------------------------------------------- Fujitsu Limited incurred a group net profit of 7.6 billion yen (US$71.7 million) in the December quarter, versus a net loss of 24.9 billion yen a year earlier, Channel News Asia reports. For the nine months to December, the company said it made a net loss of 50.9 billion yen compared with 172.3 billion yen a year earlier. Fujitsu's group sales in the quarter rose 5.0 percent from a year earlier to 1.07 trillion yen while its recurring loss shrank to 16.5 billion yen from 29.2 billion yen a year earlier. The group gained 25 billion yen from sales of Fanuc shares to boost its net earnings, the statement said. HITACHI LIMITED: Former Employee Wins 163M in Patent Dispute ------------------------------------------------------------ The Tokyo High Court has ordered Hitachi Limited to pay a former employee 163 million yen for his optical disk-related inventions, Japan Times reported on Friday. A lower court decision earlier awarded the plaintiff, Seiji Yonezawa, 34.89 million yen. Hitachi initially paid him 2.3 million yen. Hitachi did not accept the ruling, implying that it is prepared to appeal the decision in the Supreme Court. JAPAN AIRLINES: Jet Defects Cost Y500M in Lost Revenue ------------------------------------------------------ Japan Airlines Group posted a loss of 500 million yen from the cancellation of flights due to engine cracks found in some of its jets, according to AFX Asia. Japan Air System Co. Ltd (JAS), a unit of Japan Airlines System Corp (JAL Group), will have grounded a total 569 flights using its mid-sized McDonnell Douglas jets from January 19 to February 7 due to the engine problems, JAL Group president Isao Kaneko said. Japan Airlines System is a holding company formed by a merger in 2002 between Japan Airlines and the smaller Japan Air System. The group includes another domestic unit, JAL Express (JEX), and affiliated international carriers, Japan Asia Airways and JALways. NISSAN MOTOR: Worldwide Car Sales Up 12% in Third Quarter --------------------------------------------------------- Nissan Motor Co. sold 719,696 vehicles in the October to December period, up from 644,816 a year earlier, reports the Japan Times. Sales volume in the United States increased 15.3 percent, from 172,550 units to 198,946. In Europe, Nissan sold 132,965, up 15.1 percent from 115,542, while in Japan it sold 179,070, up from 172,850. Nissan has rebounded from near- bankruptcy under an alliance launched in 1999 with Renault SA of France, which now owns 44.3 percent of Nissan. The Company has been trying to expand global sales, following a phase of sharp cost cutting. SKYMARK AIRLINES: New Chief Plans Computer System Upgrade --------------------------------------------------------- Skymark Airlines Co. President Shinichi Nishikubo plans to reinforce the discount carrier's infrastructure, Japan Times said on Thursday. The newly appointed President said he would upgrade the carrier's inefficient computer system within a year to improve reservation handling, check-in services and other operations. The airline entered the domestic airline market in 1998 as the first newcomer in 35 years. It has yet to achieve a full-year profit. SIRAGASI GOLF: Golf Course Starts Rehabilitation Proceedings ------------------------------------------------------------ Sirasagi Golf Club, K.K., which has total liabilities of 18.7 billion yen against a capital of 1.48 billion yen, has applied for civil rehabilitation proceedings, according to Tokyo Shoko Research. The golf course is located Himeji-shi, Hyogo, Japan. TOSHIBA CORPORATION: Board Nominates Tadashi Okamura as CEO ----------------------------------------------------------- The Board of Directors of Toshiba Corporation has accepted a proposal from its Nominations Committee that Tadashi Okamura, Toshiba's current President and CEO, be nominated as a candidate for President and CEO of the company for the coming term. The one-year term will run from the date of the board meeting to be held immediately after the general meeting of the shareholders in late June. In 2003, Toshiba enhanced its corporate governance, including operating transparency and managerial supervisory functions, by adopting the 'Company with Committee' system. The Nominations Committee was established at that time, and has a majority of outside directors. In making its recommendation, the three-member committee agreed that Toshiba's key management challenges are to ensure continued promotion of renovation programs and to establish solid ground for sustained growth. The committee noted the contributions that Mr. Okamura has already made in this regard, and advocated that Mr. Okamura should continue to carry out his current responsibilities. Mr. Okamura's biography is as follows: Name: Tadashi Okamura Birth date: July 26, 1938 (65 years old) Place of birth: Tokyo March 1962: Graduated from Faculty of Law, The University of Tokyo April 1962: Joined Toshiba Corporation June 1994: Vice President and Director June 2000: President and CEO, Director TOSHIBA CORPORATION: UBS Ups Rating to "Neutral 2" -------------------------------------------------- UBS Securities recently raised its rating on Toshiba Corporation to "neutral 2" from "reduce 2" on strong earnings in the Company's chip business, according to Reuters. Toshiba posted a group net loss of 9.25 billion yen (US$87.36 million) on Thursday for the October-December quarter, compared with a net loss of 6.90 billion yen a year earlier. But operating profit, which shows a Company's core earnings strength, totaled 14.03 billion yen, up sharply from 2.43 billion yen in the same period a year earlier. Toshiba, hit hard by aggressive pricing from rivals including Dell Inc., said on Thursday it expected to post a 26.5 billion yen loss in PCs and PC peripherals for 2003/04, 26 percent more than its prior estimate. ========= K O R E A ========= SK CORPORATION: Narrows 4Q04 Net Loss to US$62.71M -------------------------------------------------- SK Corporation reported a narrower fourth-quarter loss on Friday as analysts said fatter operating margins offset hefty provisions against losses linked to its scandal-hit affiliate SK Networks Co., according to Reuters. SK Corporation posted 73.5 billion won (US$62.71 million) in net loss in three months ended December, against a 345.2 billion won loss a year ago. Sales fell to 3.64 trillion won from 3.69 trillion. The results beat analysts' consensus forecast of a 174 billion won loss provided by Reuters Research. SSANGYONG MOTOR: Union Schedules Wednesday Strikes -------------------------------------------------- Labor union members at Ssangyong Motor Co. decided they will stage four-hour walkouts every Wednesday until February 24 to oppose the planned sale of the Company to China Bluestar Corporation, the Korea Herald reports. Ssangyong workers also plan to strike for an additional four hours during the night shifts over the same period. The strike may disrupt production of about 350 Chairman sedans, Rextons and other sport utility vehicles each day. Local creditors of Ssangyong, led by Chohung Bank, named the Chinese Company their priority-negotiating partner for the sale of a controlling stake in the carmaker late last year. =============== M A L A Y S I A =============== BUKIT KATIL: Posts Production Figures for December 2003 ------------------------------------------------------- Bukit Katil Resources Berhad announced the Group's plantation production figures for the month of December 2003: Current Month Preceeding Year Corresponding (December 2003) Month (December 2002) FFB (mt) 560.52 493.83 Current Year Preceeding Year to Date Corresponding (December 2003) Period (December 2002) FFB (mt) 4,459.64 4,345.31 HAP SENG: Issues Cancellation of Treasury Shares ------------------------------------------------ Hap Seng Consolidated Berhad announced the following: Total number of treasury shares sold (units) : 0 Total number of treasury shares cancelled (units) : 10,000 Minimum price paid for each share sold (RM) : Maximum price paid for each share sold (RM) : Total amount received for treasury shares sold (RM) : Cumulative net outstanding treasury shares as at to-date (units) : 33,137,200 Adjusted issued capital after cancellation/resale (no. of shares) (units) : 589,522,800 OILCORP BERHAD: Post Changes in Director's Shareholding -------------------------------------------------------- Oilcorp Berhad Director Mohamed Hazali Bin Dato' Seri Abu Hassan has the intention to deal in the shares of the Company, which is currently in the closed period pending announcement of its results for the fourth quarter ended 31 December 2003. His current shareholdings are as follows: Name of Director: MOHAMED HAZALI BIN DATO' SERI ABU HASSAN Direct Indirect No. of Shares % of the Company's issued and paid-up share capital 3,669,800 2.42 Direct Indirect No. of Shares % of the Company's issued and paid-up share capital 3,835,500 2.53 TANJONG PUBLIC: Posts Disposal of Shares ---------------------------------------- Tanjong Public Limited Company posted a notice of shares disposal as follows: 1. Notification by Director Yin Yee Yuen: (a) (i) That he has disposed in the open market of the MSEB, 15,000 shares of 7.5 pence each in Tanjong representing 0.0038% of the issued share capital of Tanjong as of the date of the transaction; (ii) Date of transaction - 28 January 2004; (iii) Transaction price - RM11.00 per share of 7.5 pence each. ===================== P H I L I P P I N E S ===================== FAIRMONT HOLDINGS: RTC Dismisses Stock-rigging Case Against Tan --------------------------------------------------------------- A Regional Trial Court (RTC) has dismissed with finality the stock market manipulation case against Chinese-Filipino businessman Dante T. Tan despite government's plea to revive it, according to Business World. Pasig RTC judge Briccio C. Ygana said the government, particularly the Department of Justice, failed to prove its charge that Mr. Tan "squeezed the market float" to jack up share prices of BW Resources Corporation in 1999. In reducing the available shares in the market, the Securities and Exchange Commission (SEC) had alleged Mr. Tan and other shareholders and officials of BW, now Fairmont Holdings, Inc., profited some 2 billion pesos. MANILA ELECTRIC: Projects $24M Cash Deficit in First Quarter ------------------------------------------------------------ The Manila Electric Co. (Meralco) expects a cash deficit of US$24 million in the first quarter of the year if it fails to get refinancing for a loan due in April, according to Business World. The cash deficit covers a long-term unsecured loan maturing. Meralco Treasurer Rafael Andrada said Meralco would have been able to refinance the loan had it not been for the Supreme Court order, which forced the firm to suspend a rate hike of 12 centavos per kilowatt-hour granted by the Energy Regulatory Commission (ERC). The Supreme Court barred Meralco from implementing the provisional increase pending the resolution of a petition against the move. NATIONAL STEEL: Creditors Seal Pact With Global Holdings -------------------------------------------------------- The creditor banks of National Steel Corporation (NSC) and India's Global Infrastructure Holdings Ltd. (GIHL) signed Thursday a memorandum of agreement (MOA) for the rehabilitation of the mothballed steel plant in Iligan, the Philippine Star reported on Friday. Securities and Exchange Commission-appointed NSC liquidator Danilo Concepcion was one of the main signatories to the MOA. The secured creditors who signed the MOA included the Philippine National Bank, represented by its president and chief executive officer Lorenzo V. Tan; China Banking Corp., represented by its president Peter Dee; Metrobank, represented by its senior vice president Cesar Lugtu; Land Bank of the Philippines, represented by its first vice president Cecile Borromeo; and Rizal Commercial Banking Corp., represented by its vice president Angela Tinio. The signing parties are now expected to negotiate the drafting of an asset purchase agreement whose execution would result in the payment by GIHL of a P1-billion down payment to NSC's secured creditors. The balance of P12.25 billion would be paid over the next eight years. PHILIPPINE LONG: Projects FY03 P12.8B Net Profit ------------------------------------------------ Philippine Long Distance Telephone Co. (PLDT) expects a net profit of 12.8 billion pesos for 2003, 75 percent higher than the 7.3 billion pesos net income a year earlier, the Philippine Star reports. Based on projections by financial analyst UBS Investment, PLDT's revenues for 2003 could rise to P96.1 billion compared to P80.16 billion in the previous year. ================= S I N G A P O R E ================= CHARTERED SEMICONDUCTOR: Unveils Summary of 4Q03 Performance ------------------------------------------------------------ Chartered Semiconductor Manufacturing Co. (CSM) issued a summary of fourth quarter 2003 performance as follows: Revenues were $182.8 million, up 32.7% compared to third quarter 2003. Revenues including Chartered's share of Silicon Manufacturing Partners (SMP) were $237.2 million, up 28.0% from $185.3 million in the previous quarter, due to increases in all major market sectors with the largest contribution coming from the communications sector. Compared to fourth quarter 2002, revenues were up 69.3% from $107.9 million. Revenues including Chartered's share of SMP were up 89.3% from $125.3 million in the year-ago quarter, driven primarily by the communications sector and to a lesser extent the consumer and computer sectors. The largest percentage increase occurred in the consumer sector, which increased almost four-fold from the year-ago quarter. Gross profit was $11.1 million, or 6.1% of revenues, an improvement from a gross loss of $53.9 million, or negative 49.9% of revenues in the year-ago quarter, primarily due to significantly higher revenues and cost reductions. Gross profit improved sequentially by $32.8 million from a loss of $21.7 million, or negative 15.8% of revenues in third quarter 2003, primarily due to higher revenues. Research and development (R&D) expenses were $31.1 million, an increase of 11.0% from the year-ago quarter, primarily due to increased investments to accelerate the Company's technology roadmap which provides customers a breadth of processes, enabling systems-level integration. Beginning in first quarter 2003, R&D expenses include Chartered's share of expenses related to the IBM joint-development agreement, announced in November 2002. Other operating expenses were $11.5 million, which included two items: Sales and marketing expenses were $9.8 million, unchanged from the year-ago quarter, and an increase of 19.1% from $8.3 million in the previous quarter. The sequential increase was primarily due to a higher level of prototyping activity. General and administrative (G&A) expenses were $10.7 million, an increase of 32.0% compared to $8.1 million in the year-ago quarter. The fourth quarter 2002 expense benefited from employee leave clearance and the termination of an employee retirement program. A fixed asset impairment of $9.0 million related to certain pieces of equipment that have been reclassified as held for sale, as part of Chartered's fab capacity rationalization A charge of $2.5 million related to Fab 1 restructuring Equity in income (loss) of our minority-owned joint-venture fab, SMP (Fab 5), was an income of $14.7 million compared to a loss of $11.5 million in the year-ago quarter, primarily due to significantly higher revenues. Equity in income of SMP increased 67.0% from an income of $8.8 million in the previous quarter, also primarily due to higher revenues. Net interest expense was $7.9 million, an increase of 68.8% from $4.7 million in the year-ago quarter, primarily due to lower interest income resulting from lower interest rates. None of the losses in our consolidated joint-venture fab, Chartered Silicon Partners (CSP or Fab 6), were allocated to the minority interest in fourth quarter 2003, compared to $17.6 million in the year-ago quarter. CSP remained in a negative net worth position in fourth quarter 2003; therefore, Chartered continued to recognize 100% of the joint venture's results, which were a loss of $35.5 million in the quarter. At the end of the quarter, CSP's net worth was negative $151.2 million. Net loss was $43.2 million, or negative 23.6% of revenues, compared to a net loss of $108.7 million, or negative 100.7% of revenues, in the year-ago quarter. Loss per American Depositary Share (ADS) and loss per share in fourth quarter 2003 were $0.17 and $0.02 respectively, compared with a loss per ADS and loss per share of $0.45 and $0.05 respectively in fourth quarter 2002. Average ADS count and ordinary share count increased by 9.7 million and 96.6 million respectively, primarily due to the eight-for-ten rights offering completed in October 2002. Revenues were $551.9 million, up 22.9% compared to $449.2 million in 2002. Revenues including Chartered's share of SMP were $727.7 million, up 50.1% from $484.8 million a year ago, driven primarily by the communications sector and to a lesser extent the consumer and computer sectors. Gross loss was $96.4 million, or negative 17.5% of revenues, an improvement from a loss of $179.5 million, or negative 40.0% of revenues in 2002, primarily due to higher revenues and lower depreciation. R&D expenses were $124.5 million, an increase of 30.7% from $95.3 million in 2002, primarily due to increased investments to accelerate the Company's technology roadmap, which provides customers a breadth of processes, enabling systems-level integration. Beginning in first quarter 2003, R&D expenses include Chartered's share of expenses related to the IBM joint- development agreement, announced in November 2002. Sales and marketing expenses were $38.3 million, a decline of 7.1% from $41.2 million in 2002, primarily due to lower financial support for customer prototyping activities. G&A expenses were $35.9 million, a decline of 16.7% compared to $43.1 million in 2002. The reduction was primarily due to a $4.9 million gain resulting from equipment disposition in second quarter 2003. Excluding this gain, the decline in 2003 was 5.4%. Other operating expenses were a gain of $6.1 million, which included three items: Included in net loss was a gain of $28.7 million associated with the conclusion of the Company's Economic Value Added (EVA) employee bonus plan. Of this amount, $27.5 million was recorded in the "other operating expenses" line. Included in net loss was a restructuring charge of $14.1 million associated with the phase out of Fab 1, $12.4 million of which was recorded in the "other operating expenses" line. A fixed asset impairment of $9.0 million related to certain pieces of equipment that have been reclassified as held for sale, as part of Chartered's fab capacity rationalization. Equity in income (loss) of our minority-owned joint-venture fab, SMP (Fab 5), was an income of $23.2 million compared to a loss of $84.8 million in 2002, primarily due to significantly higher revenues. Minority interest in loss of our joint-venture fab, Chartered Silicon Partners (CSP or Fab 6), was $9.5 million compared to $55.6 million in 2002. Due to cumulative losses, CSP's net worth became negative in first quarter 2003, triggering a consolidation accounting requirement resulting in Chartered effectively recognizing 100% of CSP's losses (and profits) until such time as CSP's net worth becomes positive. At the end of the year, CSP's net worth was negative $151.2 million. Net loss was $284.8 million, or negative 51.6% of revenues, compared to a net loss of $417.1 million, or negative 92.8% of revenues in 2002. Loss per American Depositary Share (ADS) and loss per share in 2003 were $1.14 and $0.11 respectively, compared with a loss per ADS and loss per share of $2.32 and $0.23 respectively in 2002. Average ADS count and ordinary share count increased by 70.3 million and 703.2 million respectively, primarily due to the eight-for-ten rights offering completed in October 2002. Wafer Shipments and Average Selling Prices Shipments in fourth quarter 2003 were 200.6 thousand wafers (eight-inch equivalent), an increase of 91.2% compared to 104.9 thousand wafers (eight-inch equivalent) in fourth quarter 2002. Shipments in fourth quarter 2003 increased by 30.5% compared to 153.7 thousand wafers (eight-inch equivalent) shipped in third quarter 2003. Shipments including Chartered's share of SMP were 235.0 thousand wafers (eight-inch equivalent), an increase of 97.6% compared to 119.0 thousand (eight-inch equivalent) in fourth quarter 2002. Shipments including Chartered's share of SMP in fourth quarter 2003 increased by 27.0% compared to 185.0 thousand wafers (eight-inch equivalent) shipped in third quarter 2003. Shipments in 2003 were 606.0 thousand (eight-inch equivalent), an increase of 45.3% compared to 417.0 thousand wafers (eight- inch equivalent) shipped in 2002. Shipments including Chartered's share of SMP were 722.2 thousand wafers (eight-inch equivalent), an increase of 62.2% compared to 445.2 thousand (eight-inch equivalent) in 2002. ASP was $911 in fourth quarter 2003, an increase of 1.7% from $896 per wafer in third quarter 2003, primarily due to richer mix. ASP including Chartered's share of SMP was $1,010 per wafer in fourth quarter 2003 compared to $1,002 per wafer in third quarter 2003. ASP was $911 in 2003, a decrease of 15.4% compared to $1,077 per wafer in 2002, primarily due to customer mix and pricing pressures, partially offset by substantially higher shipments of advanced technology products. ASP including Chartered's share of SMP was $1,008 per wafer in 2003 compared to $1,089 per wafer in 2002. Capacity and Utilization Capacity utilization in fourth quarter 2003 was 71% compared to 39% in the year-ago quarter, and 59% in third quarter 2003. Capacity utilization was 58% in 2003 compared to 37% in 2002. The capacity level in fourth quarter 2003 was up approximately 6% sequentially. For full year 2003, as a result of the company's capacity revitalization program announced in February 2003, advanced capacity (0.18-micron and below) increased 71%; however, total capacity increased only 5%. Investor Contacts: Suresh Kumar (1) 408.941.1110 sureshk@charteredsemi.com Clarence Fu (65) 6360.4060 cfu@charteredsemi.com Media Contacts: Chartered U.S.: Tiffany Sparks (1) 408.941.1185 tiffanys@charteredsemi.com Chartered Singapore: Maggie Tan (65) 6360.4705 maggietan@charteredsemi.com DURABEAU CONSTRUCTION: Creditors Meeting Set for February 10 ------------------------------------------------------------ Durabeau Construction Pte Ltd. issued a notice of creditor's meeting to be held at 18 Cross Street, #08-01 Marsh & McLennan Centre, Singapore 048423 on 10th February 2004 (Tuesday), at 3 in the afternoon. AGENDA (1) To table a Liquidators' Report; (2) To consider and if thought fit to appoint a committee of inspection; and (3) Any other business. Dated this 29th day of January 2004. CHEE YOH CHUANG LIM LEE MENG Liquidators. c/o Chio Lim & Associates 18 Cross Street #08-01 Marsh & McLennan Centre Singapore 048423. (1) Proxies to be used at the meeting must be lodged not later than 4 P.M. on 9th February 2004. (2) To entitle you to vote thereat, your proof must be lodged with the liquidators not later than 4 P.M. on 6th February 2004 if you have not submitted your proof earlier. GOLDENLITE INVESTMENT: Issues Winding Up Order Notice ----------------------------------------------------- Goldenlite Investment Pte Ltd issued a winding up order notice made on 16th January 2004. Name and address of Liquidator: The Official Receiver Insolvency & Public Trustee's Office 45 Maxwell Road #05-11/#06- 11 The URA Centre (East Wing) Singapore 069118. Dated this 16th day of January 2004. RAJAH & TANN Solicitors for the Petitioner. JUDIS MONETA: Releases Winding Up Order Notice ---------------------------------------------- Judis Moneta Financial Services Pte Ltd. issued a notice of winding up order made on the 16th day of February 2004. Name and Address of Liquidator: The Official Receiver Insolvency & Public Trustee's Office 45 Maxwell Road #06-11 The URA Centre (East Wing) Singapore 069118. ACIES LAW CORPORATION Solicitors for the Petitioners. MULTI-CHEM: Unveils Balance Sheet Results ----------------------------------------- Cash and cash equivalents of Multi-Chem Limited stood at $8.6 million as at 31 December 2003, down from $16.0 million as at 31 December 2002, a Company statement said. The decreased was due to the payment of a transferable loan amounting to $7.8 million in FY2003, share buyback and dividend payout, offset by the cash inflow from operations and the proceeds from the issue of US$2.0 million in convertible notes. Trade receivables increased at the Group level in line with the higher turnover, particularly due expansion of the Group's China operations. At the Company level, trade receivables increased from $5.3 million to $5.5 million due to the higher turnover of the Company, but offset by provision for doubtful debts, mainly for amounts due from two Philippines customers. Inventories held by the Company, particularly specialty chemicals were reduced due to the loss of a customer as it ceased business in June 2003 and the deliberate policy of the Company to carry less inventories. However, at the Group level despite the reduction at Company level, inventories increased because of the increase in IT stock, from $316,000 as at 31 Dec 2002 to $1.1m as at 31 Dec 2003, due to the expansion of the IT distribution business. Investment in associate decreased from $2.7m to $1.8m due to the loss of the Company's associated company being equity accounted for, as well as the payment of dividends by that associated company. Investment in joint venture decreased from $1.2m to nil due to a provision in diminution in investment of $1,083,000 made, and the loss of $98,000 equity accounted for. An provision of $880,000 was made in 4Q2003. Property, plant and equipment decreased from $16.9m to $11.4m at the Company level due to the shifting of CNC drilling machines to China in FY2003. At the Group level, property, plant and equipment increased from $26.9m to $33.0m as new machines were added to the Group's operations, offset by the depreciation incurred for the year. Bills payable comprise the payable to suppliers for the purchase of machineries. Long-term borrowings comprise the transferable loan, which had been fully repaid in Oct 2003, and the long-term loan taken by the Company's Suzhou subsidiary. Convertible notes referred to the exchangeable and convertible notes in the aggregate amount of US$2.0m issued by the Company in June 2003. =============== T H A I L A N D =============== EMC POWER: Posts Changes in Paid Up Capital ------------------------------------------- EMC Power Co. Ltd registered its paid up capital from Baht 289,278,977 to Baht 319,278,977 on January 29, 2004. This changes resulted from converting debt into equity by converting the long-term loan for working capital. Such lender of new working capital is Bangkok Bank Public Company Limited. Please be advised accordingly, Your's faithfully, (Komol Wongpornpenpap) (Slib Soongswang) Director EMC Power Company Limited Acting as a Plan Preparer of EMC Public Company Limited EMC POWER: Posts Changes in Director's Board -------------------------------------------- EMC Power Limited Plan posted changes in its Board of Directors as follows: 1. EMC has registered the resignations of Director's board; Mr. Slib Soongswang and Mr. Smai Leesakul. 2. EMC has registered the new entry of Director's board; Lieutenant General Werasak Phairat and Police Major General Panomsak ThangThong. Please be advised accordingly, Your faithfully, (Komol Wongpornpenpap) (Slib Soongswang) Director EMC Power Company Limited Acting as a Plan Preparer of EMC Public Company Limited RAIMON LAND: Clarifies FY03 Operating Results --------------------------------------------- Raimon Land PCL clarified newspaper reports that the Company expects profit of approximately Baht 500 - 600 million for the year 2003. The Company said in a statement that "For the first nine months ended 30 September 2003, the Company had profit approximately Baht 505 million which arose from gain on debt restructuring and reversal of provision for loss on investment in subsidiary. In the Fourth Quarter of the year 2003, the Company starts to recognize income of the Company subsidiary project (The Lofts Sathorn Project)." At the present, the Company is waiting for the audited operating results of the Fourth Quarter 2004 from the Auditor. As soon as the Company gets the audited operating results from the Auditor, the Company will report to the Stock Exchange of Thailand. Yours faithfully, Raimon Land Public Company Limited Kitti Thungsriwong Director RAIMON LAND: Releases Resumption of Trading Notice -------------------------------------------------- The Stock Exchange of Thailand (SET) has resumed the trading of shares in Raimon Land Pcl from 11:30 A.M. of January 30, 2004 onwards. The SET recently ordered the trading halt of Raimon Land PCL because of news reports that the Company's 2003 net profit might affect the trading of its securities. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Asia Pacific is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Frederick, Maryland USA. Lyndsey Resnick, Ma. Cristina Pernites-Lao, Editors. Copyright 2004. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR -- Asia Pacific subscription rate is $575 for 6 months delivered via e-mail. 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