Results of "Borly" (Kazakhstan) in the first half of 1999

/KASE, Aug.26, 99, Galina Chudinova/ - According to the listing requirements "Borly" (Karaganda, official list of securities, category "B") provided Kazakhstan Stock Exchange (KASE) with consolidated financial reports as of July.01, 99: balance sheet, income statement, and statement of cash flows. Following are the results of the emitter for the first half of 1999 ('000 tenge): First half of First half of Increase / Indicator 1998 1999 decrease., % ------------------------- ------------- ------------- ------------ Authorized capital (paid) 694,947 694,947 0 Owners' equity 1,410,563 1,665,518 +18.1 Total assets 2,819,565 3,863,031 +37.0 Net working capital 252,719 384,419 +52.1 Debt liability 1,122,307 2,386,454 +112.6 Credit liability 1,223,360 2,197,513 +79.6 Sales (services offered) 1,584,369 1,219,495 -23.0 Cost of goods sold (services offered) 1,208,166 690,660 -42.8 Net profit (loss) -16,816 -8,623 +48.7 ------------------------- ------------- ------------- ------------ Owners' equity of "Borly" has increased by 254.96 mln tenge or 18.1% compared to the first half of 1998. Authorized capital did not change. Increase in owners' equity is due to augmentation of undistributed profit by 266.34 mln tenge with reduction in additional paid-in capital (revaluation of long term assets) by 11.39 mln tenge. Balance sheet value of one stock has made 2,396.61 tenge at the end of reporting period which is 366.87 tenge higher than in the second quarter of last year. Growth of stock's value is caused by an increase in owners' equity of the company while number of circulating stocks did not change. Company's long term assets have decreased by 62.39 mln tenge or 4.6% relative to the same period of 1998 because salvage value of long term assets has decreased by 68.50 mln tenge which has been partially compensated by an increase in volumes of incomplete capital construction by 3.56 mln, and in other assets by 2.55 mln. Whereas, current assets have grown by 1,105.85 mln tenge (74.9%), including: debit liability growth by 1,264.15 mln tenge, growth of remaining amounts on a settlement account by 0.37 mln with reduction in inventory by 158.67 mln. As a result, total sum of company's assets have grown by 1,043.47 mln tenge or 37.0% relative to the comparable period of last year. Aggregate liabilities of "Borly" have increased by 788.51 mln tenge or 56.0%. Company has no long term liabilities as of the end of the second quarter of 1999, since 185.64 mln tenge (sum of deferred taxes) was converted into a current liability on tax payments. Current liabilities only contain credit liability which has grown by 974.15 mln tenge or 79.6%, including: growth of liabilities to suppliers and contractors by 666.79 mln, tax liabilities growth of 337.80 mln, growth of charged expensed to be paid by 84.37 mln, growth of profits of future periods by 0.24 mln with other credit liabilities decrease of 115.05 mln. Sales have decreased by 364.87 mln or 23.0% relative to the second quarter of last year, cost of goods sold (services offered) has decreased by 517.51 mln tenge or 42.8%. Expenses of the period have grown by 109.16 mln (24.8%), including: general and administrative expenses by 65.93 mln, distribution expenses by 43.23 mln tenge. However, in the second quarter of 1999 expenses exceeded profits by 8.62 mln tenge against 16.82 mln in the second quarter of 1998.