KWONG SANG HONG<00189> - Results Announcement
The Kwong Sang Hong International Limited announced on 13/3/2003:
(stock code: 00189 )
Year end date: 30/11/2002
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 1/12/2001 from 1/12/2000
to 30/11/2002 to 30/11/2001
Note ('000 ) ('000 )
Turnover : 49,044 141,269
Profit/(Loss) from Operations : (150,846) (61,786)
Finance cost : (2,526) (2,659)
Share of Profit/(Loss) of
Associates : (1,093) (12,444)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (264,994) (70,972)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.276) (0.074)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (264,994) (70,972)
Final Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Basis of presentation and comparative figures
The Group has adopted for the following new and revised Statements of
Standard Accounting Practice (SSAPs) issued by the Hong Kong Society of
Accountants in advance of its effective date in preparation of the
financial statements for the current year.
The Group has adopted the following SSAPs during the year.
SSAP 1 (Revised) Presentation of Financial Statements
SSAP 11 (Revised) Foreign Currency Translation
SSAP 15 (Revised) Cash Flow Statements
SSAP 34 Employee Benefits
The adoption of these new and revised standards has resulted in a change
in the format of presentation of the cash flow statement, an inclusion of
a statement of changes in equity and no material effect on the results for
the current or prior year. Accordingly, no prior year adjustment has been
required.
In preparing the financial statements, the directors have given careful
consideration to the future liquidity of the Group in light of its net
current liabilities as at 30th November, 2002. The directors are
satisfied that the Group has access to sufficient funding and facilities
to be able to meet in full its liabilities as they fall due for the
foreseeable future. Accordingly, the financial statements have been
prepared on a going concern basis.
2. Turnover
Turnover represents the aggregate of the amounts received and
receivable from sales of properties, property rental income and cosmetics
goods sold to outside customers less returns.
3. Segmental information
Business segments
For management purposes, the Group is currently organised into
three operating divisions - property development, property leasing and
cosmetics. These divisions are the basis on which the Group reports its
primary segment information.
Principal activities are as follows:
Property development - Property development and sales of
properties
Property leasing - Property rental
Cosmetics - Manufacturing and trading in cosmetics
products
Segment information about these businesses is presented below.
For the year ended 30th November, 2002
Property Property Other
development leasing Cosmetics operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
REVENUE
Revenue from external
customers
16,800 25,164 7,080 - 49,044
_______ _______ _______ _______ _______
_______ _______ _______ _______ _______
RESULT
Segment result
(85,354) (50,112) 1,776 - (133,690)
_______ _______ _______ _______
_______ _______ _______ _______
Unallocated corporate expenses (17,156)
_______
Loss from operations (150,846)
Finance costs (2,526)
Investment income 5,464
Other losses
(150,780) 1,109 - (2,059) (151,730)
Share of results of associates
(240) - (1,096) 243 (1,093)
_______
Loss before taxation (300,731)
Taxation (1,209)
_______
Loss after taxation (301,940)
_______
_______
For the year ended 30th November, 2001
Property Property Other
development leasing Cosmetics operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
REVENUE
Revenue from external
customers
109,915 26,547 4,807 - 141,269
_______ _______ _______ _______ _______
_______ _______ _______ _______ _______
RESULT
Segment result
(58,531) 14,070 1,424 - (43,037)
_______ _______ _______ _______
_______ _______ _______ _______
Unallocated corporate expenses (18,749)
_______
Loss from operations (61,786)
Finance costs (2,659)
Investment income 19,023
Other losses
(39,457) (1,242) - 7 (40,692)
Share of results of associates
(14,180) - (67) 1,803 (12,444)
_______
Loss before taxation (98,558)
Taxation 26,441
_______
Loss after taxation (72,117)
_______
_______
Geographical segments
The following table provides an analysis of the Group's revenue and
contribution to loss from operations by geographical market, irrespective
of the origin of the goods/services:
Revenue by Contribution to
geographical market loss from operations
2002 2001 2002 2001
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong
32,531 124,388 (103,265) (57,616)
Elsewhere in the PRC
16,513 16,881 (30,425) 14,579
_________ _________ _________ _________
49,044 141,269 (133,690) (43,037)
_________ _________
_________ _________
Unallocated corporate expenses (17,156) (18,749)
_________ _________
Loss from operations (150,846) (61,786)
_________ _________
--------- ---------
4. Condensed Consolidated Statement of Changes in Equity
Share Share Contributed Exchange Accumulated
capital premium surplus reserve profits (loss) Total
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
THE GROUP
At 1st December, 2000
383,960 681,650 437,153 1,348 208,903 1,713,014
_______ _______ _______ _______ _______ _________
Exchange adjustment,
net of minority interests
- - - 1,110 - 1,110
Share of associates'
reserve movement
during the year
- - - 173 - 173
_______ _______ _______ _______ _______ _________
Net gains not recognised
in the income statement
- - - 1,283 - 1,283
_______ _______ _______ _______ _______ _________
Loss for the year
- - - - (70,972) (70,972)
_______ _______ _______ _______ _______ _________
At 30th November, 2001
383,960 681,650 437,153 2,631 137,931 1,643,325
_______ _______ _______ _______ _______ _________
Exchange adjustment,
net of minority interests
- - - (93) - (93)
Share of associates'
reserve movement
during the year
- - - (868) - (868)
_______ _______ _______ _______ _______ _________
Net loss not recognised
in the income statement
- - - (961) - (961)
_______ _______ _______ _______ _______ _________
Profit/Loss for the year
- - - - (264,994) (264,994)
_______ _______ _______ _______ _______ _________
At 30th November, 2002
383,960 681,650 437,153 1,670 (127,063) 1,377,370
_______ _______ _______ _______ _______ _________
_______ _______ _______ ______ _______ _________
5. Staff expenses and depreciation
Year ended 30th Novemebr,
2002 2001
HK$'000 HK$'000
Staff expenses
- Selling & marketing expenses (193) (216)
- Administrative expenses (4,778) (6,464)
_________ __________
(4,971) (6,680)
_________ __________
Depreciation
- Selling & marketing expenses - (7)
- Administrative expenses (157) (39)
_________ __________
(157) (46)
_________ __________
6. Other operating expenses
Year ended 30th November,
2002 2001
HK$'000 HK$'000
Deficit on revaluation of investment properties
(69,300) (3,571)
Impairment loss recognised in respect of
properties held for development (66,114) -
Impairment loss recognised in respect of
properties held for sale (12,795) (2,016)
Allowances on loans receivable (12,521) -
Legal expenses in respect of lawsuits (2,644) (10,048)
Loss on disposals of plant and equipment (589) -
Loss on disposal of a property held for development
- (46,383)
Loss on disposal of investment properties - (1,611)
_______ _______
(163,963) (63,629)
========== ========
7. Investment
Income 2002 2001
HK$'000 HK$'000
Unrealised holding gain (loss) on other investments
2,799 (394)
Interest income 2,347 6,476
Dividend income - unlisted investment 1,818 3,506
Impairment loss on other investments (1,500) -
Gain on disposal of other investments - 9,435
_______ _______
5,464 19,023
======= =======
8. Other losses
2002 2001
HK$'000 HK$'000
Impairment loss on interests in associates
- amounts due from associates (149,672) (21,593)
- interest in associates (2,058) -
- Write off of interest previously capitalised - (19,099)
_______ _______
(151,730) (40,692)
========= ========
9. Taxation
2002 2001
HK$'000 HK$'000
The credit (charge) comprises:
Company and subsidiaries
- Hong Kong
current year (1,057) (1,070)
prior years 41 27,767
_______ _______
(1,016) 26,697
_______ _______
Associates
- Hong Kong (176) (244)
- Other than Hong Kong (17) (12)
_______ _______
(193) (256)
_______ _______
(1,209) 26,441
======= ========
Hong Kong Profits Tax has been provided for at the rate of 16% on the
estimated assessable profits for the year. Taxation on profits of
associates arising outside Hong Kong has been provided for in accordance
with the relevant local jurisdictions. The taxation credit in 2001
represented a reversal of provision made upon refund of tax paid in
previous years at the final resolution of an outstanding tax dispute.
No provision for deferred taxation has been recognised in the financial
statements as the amount involved is not significant.
Deferred tax has not been recognised in respect of the deficit arising on
the revaluation of investment properties and investment securities as
profits or losses arising on the disposal of these assets would not be
assessable or allowable for tax purpose. Accordingly, the revaluation
does not constitute a timing difference for tax purpose.
10. Loss per share
The calculation of the basic loss per share is based on the loss for the
year of HK$264,994,000 (2001: HK$70,972,000) and on 959,899,416 (2001:
959,899,416) ordinary shares in issue during the year.
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