Re: Canada Land Ltd (CDL) Announces Half Year Financial Results

Please find attached CDL’s financial results for the 6 months ended 30 September, 1999, for your reference. The Company reported a loss of A$830,000 on revenue totalling A$307,000. No interim dividend was declared. The loss was greater than expected, however, we remain optimistic for several reasons:

• The Company was able to sell a number of units in the Canview Bulding due to a more stabilised Guangzhou property market;
• The Wong Tai Sin (WTS) Temple has finally moved into profits to CDL. Although the sale of ancestral memorial plates has been slow, it has picked up since November with over 170 plates sold in that month alone. To date, the Company has sold more than 500 plates. The five shops located in WTS are also producing healthy revenue. The number of paid visitors to WTS has averaged 2,000 per day and we expect both visitors and plate sales to increase over the busy Chinese Lunar New Year celebration in February;
• The Company is also settling on a tax litigation in December 1999. Although the Company has already provided for tax losses, a legal win would enable CDL to write back approximately HK$4 million.

We remain cautiously optimistic for CDL to meet our forecast of A$1 million after tax profit for the current financial year ending 30 March, 2000. At the current share price of A$0.115, CDL is trading at 82.3 per cent discount to its NTA backing of A$0.65 per share and 11.5 times our forecast earnings. Accumulation at current levels of A$0.10 to A$0.11 is recommended.

Please do not hesitate to contact Sino if you have any queries.

Extract of CDL's 99 Interim Report 

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For personal use of clients of the Sino Securities International Ltd group. The advice and information is believed accurate and reliable but no such warranty is given and no responsibility is accepted by the company or any member or employee for any loss or damage whatsoever arising in any way for any representation, act or omission, whether expressed or implied (including responsibility to any person by reason of negligence). The Sino group may be beneficial owners or have a financial interest in the investments or transactions discussed.