Kingboard offers developer reprieve

Kingboard (0148) said it will give more time to Country Garden (2007) to repay the debts, though its subsidiary filed a winding-up petition against the embattled mainland developer last month.

It comes as both Kingboard and Kingboard Laminates (1888) jumped nearly 7 percent yesterday on forecast improvement this year.

Last year, the net profit of Kingboard slumped 44 percent to HK$2.06 billion and the final dividend was slashed by 52 percent to 36 HK cents per share. The company blamed the provisions of HK$893.9 million for the credit loss of a loan to Country Garden.

In terms of the liquidation petition, Kingboard chairman Cheung Kwok-wing said the move is out of the responsibility of the shareholders.

Meanwhile, Kingboard Laminates said the net profit last year dived 52 percent to HK$907 million and reduced the final dividend by 50 percent to 10 HK cents apiece.