Results of "Shnos" (Kazakhstan) in the second quarter of 1999

/KASE, Aug.26, 99, Nadir Jakupov, Galina Chudinova/ - According to the listing requirements "Shnos" (Shymkent, official list of securities, category "A") provided Kazakhstan Stock Exchange (KASE) with financial reports for the first half of 1999: balance sheet, income statement, and statement of cash flows and minutes of annual general meeting on company's results in 1998. Following are the results of the emitter for the second quarter of 1999 ('000 tenge): First half of First half of Increase / Indicator 1998 1999 decrease., % ------------------------- ------------- ------------- ------------ Authorized capital (announced) 83,097 100,000 +20.3 Authorized capital (paid) 83,097 83,097 0 Owners' equity 11,620,103 12,309,490 +5.9 Total assets 12,894,787 14,673,929 +13.8 Net working capital 4,644,124 4,806,230 +3.5 Debt liability (net) 3,369,971 4,721,582 +40.1 Credit liability 1,274,684 2,364,439 +85.5 Sales (services offered) 9,212,107 8,446,415 -8.3 Cost of goods sold (services offered) 6,665,792 5,869,476 -11.9 Net profit (loss) 1,427,280 951,085 -33.4 ------------------------- ------------- ------------- ------------ At the end of the second quarter of 1999 paid part of authorized capital has not changed since part of stocks of the second issue has been on an issuance account. Increase in company's owners' equity by 689.39 mln tenge or 5.9% relative to the second quarter of 1998 was due to increase in undistributed profits by 725.37 mln tenge and decrease in unpaid capital (revaluation of long term assets) by 35.98 mln tenge. Balance sheet value of one stock has made 148.13 tenge (taking into account stock split held at the registration of the second issue). Comparable figure for the second quarter of last year (first issue of stocks) - 13,983.38 tenge. Company's assets has grown by 1,779.14 mln tenge or 13.8% compared to the second quarter of 1998. 5,480.26 mln out of the total growth is current assets. Increase in current assets is due to growth of debt liability by 4,721.58 mln tenge, growth of remaining amounts on a settlement account or cash by 1,441.49 mln tenge (with decrease in inventory by 610.81 mln tenge), and due to creation of new provisions for obsolete materials for 72.00 mln tenge. Company's long term assets have decreased by 3,701.12 mln tenge or 35.8%, including: debt liability reduction of 4,228.40 mln tenge, incomplete capital construction reduction of 3,707.46 mln tenge. reduction of long term assets has been compensated by an increase in fixed assets, in intangible assets and in investments by 4,234.74 mln tenge. Company has no long term liabilities. Short term liabilities have grown by 1,089.76 mln tenge or 85.5% compared to the second quarter of last year due to growth of credit liabilities. Sales have decreased by 765.69 mln tenge or 8.3% compared to the same period of last year, cost of goods sold has decreased by 796.32 mln tenge or 11.9%. Expenses of the period relative to the second quarter of 1998 have grown by 1,155.80 mln tenge or 3.2 times, including: general and administrative expenses by 825.56 mln tenge, selling expenses by 330.24 mln tenge. As a result, net profit received by "Shnos" during the reporting period was lower the net profit received last year by 476.20 mln or 33.4%. At stockholders annual general meeting, held on July 26, 1999, annual results of company's activities, annual financial results, report of the Board and conclusions of the Revision commission were adopted. The meeting decided to declare dividends on preferred stocks determined by the company's charter. Dividends on common stocks were decided to use for company expansion. The Board consisting of three people was elected at the meeting (Bizakov N.S. - chairman of the Board, Akhabaev B.A. - vice-chairman of the Board and commercial director, Pak V.S. - vice-chairman of the Board and technical director). Also, "Arthur Andersen" was assigned as a company's auditor, and new united marketing structure was adopted due to presumable merger or other corporate actions.