Date
23 September 2017
I.T., chaired by Sham Kar-wai, has converted all of its time deposits into Hong Kong dollars. Photo: HKEJ
I.T., chaired by Sham Kar-wai, has converted all of its time deposits into Hong Kong dollars. Photo: HKEJ

I.T. issues profit warning after HK$60 mln loss in RMB value

I.T. Ltd. (00999.HK) has issued a profit warning after disclosing an estimated HK$60 million loss from the decline in the value of its renminbi time deposits, the Hong Kong Economic Journal reported on Friday.

The loss is expected to have a material impact on its net profit for the six months to August, the apparel company said in a filing with the stock exchange.

In light of recent fluctuations in the renminbi’s exchange rate, the company said it has converted all of its time deposits worth 1.19 billion yuan (US$185.9 million) into Hong Kong dollars on the spot market or by entering into forward currency contracts.

As of the end of February, the company had cash and cash equivalent of HK$2.29 billion, of which HK$1.91 billion or 83.3 percent was in renminbi, the company said.

About HK$1.44 billion had been put in short-term renminbi deposits, mainly time deposits, for an annual interest of 2.3 percent.

The company also issued in May 2013 a batch of five-year preference notes worth 1 billion yuan with an annual interest rate of 6.25 percent. 

Chow Tai Fook Jewellery Group Ltd. (01929.HK) also held about 6 billion yuan of cash and cash equivalent as of the end of March this year, which it used mainly for its business in mainland China.

Meanwhile, Lifestyle International Holdings Ltd. (01212.HK) has 37.1 percent of its HK$9.2 billion cash and cash equivalent in renminbi.

[Chinese version中文版]

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