Pokphand writes off RI assets

Pokphand writes off RI assets

HONG KONG (Reuters): C.P. Pokphand Co. Ltd. said it had decided to completely write down its assets in Indonesia to zero due to political uncertainty in the country, resulting in a provision of US$20.7 million in its 1997 results.

"Our decision to write down our Indonesia assets during the last financial year represents prudent management as it means that there is no future impact on the company from the current political turmoil there," C.P. Pokphand president Surnet Jiaravanon said in a statement.

The company reported on Thursday a 1997 net loss of $107.3 million compared with profit of $7.08 million in 1996.

C.P. Pokphand said 70 percent-owned industrial unit Ek Chor China Motorcycle Co. Ltd. reported a 1997 net loss of 442.7 million yuan (US$53.5 million). Both Shanghai-Ek Chor Motorcycle Co. Ltd. and Luoyang Northern Ek Chor Motorcycle Co. Ltd. posted losses last year.