TNAG-1812-FCO40-2573-Preservation-of-Ohel-Leah-Synagogue-in-Hong-Kong-1988 — Page 50

This compares with the period between 1983 and 1985 when the benefits gained from the employment of borrowed funds were not enough to cover the interest expense on those

funds.

The market value of all shares held by the Group, listed and unlisted, was at $HK277.03 million as at December 31, 1987. This compares with $HK246.79 million the previous

Year.

Income from unlisted investments fell from $HK7.08

million in 1986 to $HK860,000 in 1987, whilst income from

listed securities increased from $HK13.36 million in 1986 to

$HK15.02 million in 1987.

Cash on hand in the bank increased 89.93 percent, from $HK58.39 million in 1986 to $HK110.90 million in 1987.

Interest payments decreased 25.43 percent, from $HK62.65 million in 1986 to $HK46.92 million in 1987.

In 1987, there was a minor restructuring of debt by the Group, decreasing its levels of Long-Term Debt whilst increasing its levels of Short-Term Debt.

This restructuring of debt into more immediate debt has had little effect on liquidity.

The Total Debt of the Group decreased by 8.82 percent from its 1986 levels. The Total Debt as at December 31, 1987

stood at $HK965.45 million.

Contingent Liabilities fell dramatically in 1987 from the levels of 1986 and 1985. The movements are summarised in the following table:

Table 4: Summary of Contingent Liabilities ($HK,000)

1985

1986 1987

a. Guarantees have been

entered into to secure bank

and other loans to subsidiaries

and associates which, at

December 31,1987 aggregated:

159,874 149,059 20,282

b. There are Contingent Liabilities in respect of outstanding letters of credit, shipping guarantees, forward exchange contracts and indemnities which, as at

December 31, 1987

aggregated:

94,177 16,844 9,715

254,051 165,903 29,997

A possible reason for the large decrease in Contingent Liabilities is that the subsidiaries of the Group have repaid a large portion of the loans which had been granted to them.

The financial analysis of The Wing On (Holdings)

Ltd done by TOLFIN, TARGET's On-Line

Financial Network, is on page 7-10

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