or Paul Winkle, Corporate Relations Group, 800-444-4980/
From: Vivek R. Dabholkar (vsdab@ix.netcom.com)
Subject: CHNA: CEO's Assurance
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Newsgroups: misc.invest.stocks, misc.inest.technical
Date: 1996/03/19
China Pacific Releases Statement
LOS ANGELES, March 14 /PRNewswire/ -- China Pacific, Inc. (Nasdaq:
CHNA) released the following statement regarding the recent drop in
price in the company's common stock:
"The company is not aware of any reasons which would lead to the drop
in the company's share price and would like to reaffirm to its
shareholders that the company's steel operations remain sound and
solid. Arthur Andersen is currently completing an audit of the
company's financial statements for the year ended December 31, 1995.
This audit will be reported based on U. S.accounting procedures and is
expected to reflect a profitable year."
In an additional statement, Clement Mak, China Pacific chairman,
addresses the possible impact of the China-Taiwan conflict on China
Pacific's operations: "Although the China-Taiwan conflict may
contribute to an adverse sentiment with regard to Chinese business
stocks in general, I am of the opinion that such conflict will have
very little effect on China Pacific's steel operations in Chengdu. Our
steel is situated in the Southwest region of China, while Taiwan faces
the east coast. Historically, the economic activities of Southwest
China are dominated by regional mass demands and domestic investments.
Likewise, demands for our steel products come from the mass
population's demand for continual improvements in the infrastructure of
regional cities. To the extent that China continues its open policy and
gives the people the freedom to make money, demands for our steel
products will continue unimpaired. In addition, the Central Government
has already announced its plan to invest more heavily over the next
five years in the West and in inner China, as opposed to the coastal
area. This would certainly increase demands for China Pacific's steel
products for the foreseeable future. In fact, this past February our
plant broke a production record, beating its February 1995 figure by 9
percent."
Mak continued, "We will continue to manage the company to enhance
profits and ensure stability. We appreciate the patience of our
shareholders who have endured our growing pains as reflected
in recent stock prices."
/CONTACT: Connie Mo, China Pacific, Inc., 310-433-1882; or Paul
Winkle, Corporate
Relations Group, 800-444-4980/ |
