By the time Sino-i reported its interim results to September 30, many seemed to have forgotten this was a property player. Though the company is now claiming a new internet focus, the interim figures have little if any relationship to technology. Interim turnover improved 17% from $69 million for the six months ending September 30, 1998 to $81 million this period. Net losses improved with the bottom line showing a deficit of $46 million versus the $67 million last year. Basic loss per share appears much improved (loss of 1.88 cents versus 9.92 cents in 1998), but much of that is due to share dilution. If we apply the same number of shares used in 1998, the loss per share would be 6.79 cents rather than 1.88 cents.
Sino-I appears now to have a technology and communications focus, but aside from a few web sites, there is not much with which to judge their effectiveness. The company says it applied for a subscription television broadcasting license in Hong Kong and will team up with Hutchison Telecom to develop the network for cable TV in Hong Kong. Hutchison, however, has rejected the idea they are in partnership and says that Sino-I is simply a paying customer.
Future The company has extremely high levels of debt and not nearly enough cash to service it. The ratio is total debt to equity is over 11 times. They have diluted shares too much, and there's nothing to stop them from using that tactic again. In addition, the company changed its name and hinted at a bright future in the IT industry in the PRC. If it can't handle its own core business, it probably shouldn't be jumping onto the high-tech bandwagon. Not an interesting investment. |