TriNorth Capital Inc. Second Quarter Report: 1999
TORONTO, ONTARIO--The results of operations for TriNorth Capital
Inc. for the three and six month periods ended June 30, 1999
reflect the sale of the Company's 80 percent interest in Guilin
Tire Company which was approved by shareholders in the second
quarter. The results of operations for the three months ended
March 31, 1999 have been restated to reflect the sale.
For the six months ended June 30, 1999, TriNorth had net income of
$7,468,899 ($0.27 per share) compared with a loss of $1,914,209
($0.07 per share) in the same period in 1998. The net income
includes an extraordinary gain of $8,012,205 recorded in the
second quarter on the sale of the Company's interest in the Guilin
Tire Company. The loss before this extraordinary item for the six
months ended June 30, 1999 was $543,304.
At June 30, 1999, the Company had cash on hand of $3.4 million.
/T/
Financial Summary
-----------------
Three months ended June 30 Six months ended June 30
1999 1998 1999 1998
---- ---- ---- ----
Revenue $ 3,476 $ 13,785,204 $ 3,476 $ 23,590,692
Loss before undernoted (285,644) (1,009,402) (543,306) (2,279,682)
Gain on sale of Guilin
Tire Company 9,186,113 -- 8,012,205 --
Net income (loss) 8,900,469 (799,366) 7,468,899 (1,914,209)
Earnings (loss) per
share $ 0.32 $ (0.03) $ 0.27 $ (0.07)
Shares outstanding
(before giving effect to
cancellation of 11,954,000
shares) 27,607,817 27,607,817 27,607,817 27,607,817
/T/
Recent Corporate Developments
Shareholders approved the sale of the Company's 80 percent
interest in the Guilin Tire Company at the meeting of shareholders
held on June 18, 1999. The Company has received US$ 2.3 million of
the total price of US$ 10 million. The balance is payable by
December 18, 1999 failing which the Company will have the right to
liquidate the remaining assets of the Guilin Tire Company to
satisfy the balance. The Company will aggressively pursue
collection of the remaining balance and it hopes to receive a
significant payment in the third quarter.
The Company is in the process of cancelling the 11,954,000 shares
which the Company's former controlling shareholder agreed to
surrender for cancellation as part of the sale transaction. After
cancellation of the 11,954,000 shares, 15,653,817 shares of the
Company will be outstanding. The financial results reported in
this Second Quarter Report do not reflect the cancellation of the
11,954,000 shares.
The name of the Company was changed immediately following the
shareholders meeting from South China Industries (Canada) Inc. to
TriNorth Capital Inc. At the same time, the share capital of the
Company was reclassified and simplified by changing all of the
outstanding shares into common shares on a one for one basis.
The Company's priority is to collect the balance of the proceeds
from the sale of its interest in the Guilin Tire Company. The
Company is also reviewing new business ventures in Canada that
will provide opportunities to restore shareholder value.
Year 2000 Update
The Company does not believe that it is exposed to any Year 2000
compliance risks. |
