Because of unexpected costs, the Boca Raton-based development group is scrapping plans to build a mixed-used residential-commercial project in Beijing known as Millennium Towers.
Besides the problem with that project, the publicly traded company disclosed in a new shareholder's report that its survival depends on continued financial support from Far East Consortium International Ltd., a Cayman Islands investment group that owns 71% of outstanding shares in New China Homes.
Moreover, the company disclosed that in December Trevor Bradford replaced Charles Stein as the company's chairman. Earlier this year, the company suspended and terminated an employment contract with Michael O'Young, the company's president and chief executive office. Ton Voon Lin has since been hired as the new CEO.
Despite those difficulties, the company disclosed it has completed about 2,154 residential units in the California Gardens mixed-used residential project in Shanghai.
New China Homes also reported an estimated net loss of $860,962, or seven cents per diluted share, on total operating revenue of $21.7 million for the year ended March 31, compared with a estimated net gain of $626,107, or about six cents per diluted share, on total operating revenue of about $22.5 million for the same period in 2000. The 2000 figures are converted from Hong Kong dollars at an estimated ratio of 1:7.7685.
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