泰生保險有限公司 THAI PRASIT INSURANCE CO. LTD. (Incorporated in Thailand)
WE PROTECT YOUR RISKS ON ALL CLASSES OF INSURANCE
Head Office:
82 Sukhumvit
Soi 62 Prakanong, Bangkok Hong Kong Office: Room 520-521, Peninsula Centre, 67 Mody Road,
Tsimshatsui, Kowloon,
Tel: 3-7214421 – 5
aries were dormant.
companies listed in
Panin Holdings's Annual Report in- dicates, to some ex- tent, the way in which the Group was poorly man- aged in the past.
In 1985, 11 of the Group's 28 subsidi-
In 1986, only 2 of the Group's 15 subsidiaries were dor-
mant.
However, this was due to the redesignation of a number of subsidiary companies into the category of associate com- panies: As a result, 11 of the Group's 17 associated compa- nies were dormant.
In 1987, 2 of the Group's 15 subsidiaries were dormant and 11 of the Group's 21 associates were dormant.
When TARGET enquired about the large number of dormant companies within Panin Holdings's associates and subsidiaries, the Group replied that there was nothing ab- normal with such a situation.
The Group was able to reduce Interest Payments for 1987 by 71.31 percent, from $HK37.07 million in 1986 to $HK10.64 million.
Because of the Group's constant losses, the Reserves of the Group have been steadily depleted.
The Reserves of the Group stood at $HK5.55 million on December 31, 1987 compared with $HK40.95 million on the same date in 1985.
A reduction in the Reserves of the Group is a reduction in the Group's Assets and the earning power of the Group.
The Prospects
A lot more than a change of name and a number of new directors is required to turn around the operations of Panin Holdings Ltd.
However, without the yoke of the Provisions for Bad Debts, which have had to be made in the past, the Group is now starting with a fairly clean slate.
If the rumours that the Group is to be taken over fully by China are true, then this may be a good thing for Panin Holdings, for an injection of funds to build up its depleted earning assets may in the pipeline.
However, in a full take-over by the Chinese, the good
management which the Group requires may not be forth- coming.
The former Board of Directors, headed by Mr John Kwong Sun Chan, has seemingly stopped the rot in Panin Holdings and has come to grips with the situation, to some
extent.
However, since 1987 many members of this management team have resigned, and a number of Chinese Directors have stepped in, and the show is to be run by General Manager Eugene Ho.
Whether or not this new management team can continue in the same vein is yet to be proved.
The Group has strengthened its ties with the Chinese, and this may prove beneficial in the future.
The success of the Group in the future is dependent on the success of its major investment, that is the Group's 49- percent holding in Xiamen International Bank.
The Group has seemingly recovered from the heavy financing costs involved in the start up of the joint-venture, Xiamen International Bank, which threw the Group into a financial tailspin in 1985.
The Xiamen International Bank has been performing disappointingly since 1985 when the joint venture with Panin Holdings was struck.
However, the results of the joint-venture bank and Panin Holdings would have been much better had it not been for the large Provisions for Bad and Doubtful Debts which had to be made.
As Panin Holdings has, seemingly, recovered from its financial difficulties of 1985 and is no longer required to make Provisions for Bad and Doubtful Debts, the Group was able to make a fresh start in 1988, and this will make operating in 1988 much easier than in the Group's recent
past.
The operating conditions for banking in Hongkong and in China have been improving throughout the first half of this year, with the economic environment becoming more stable compared with the latter half of 1987.
Interest rates have risen in the first half of 1988 and are
forecast to rise even further.
This will go some way in relieving the 'squeezed' Oper- ating Profit Margins felt by the Xiamen International Bank. These reasons, and the increased support which Panin Holdings is receiving from its joint-venture partner, should see the Xiamen International Bank become more profitable than it has been in the past.
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