SANYUAN GROUP<00140> - Results Announcement
Sanyuan Group Limited announced on 21/04/2005:
(stock code: 00140 )
Year end date: 31/12/2004
Currency: HKD
Auditors' Report: Qualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/01/2004 from 01/01/2003
to 31/12/2004 to 31/12/2003
Note ('000 ) ('000 )
Turnover : 1,169 1,355
Profit/(Loss) from Operations : 225,898 125,949
Finance cost : (9,641) (29,450)
Share of Profit/(Loss) of
Associates : N/A 31
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 217,547 96,232
% Change over Last Period : +126 %
EPS/(LPS)-Basic (in dollars) : 0.459 0.310
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 217,547 96,232
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) SUMMARY OF AUDITORS' OPINION
The auditors' report on the Group's financial statements as at and for the
year ended 31 December 2004 has been qualified in relation to the
existence of a fundamental uncertainty as follows:
Fundamental uncertainty
At the balance sheet date, both the Company and the Group had significant
capital deficiencies. In forming the auditors' opinion, they have
considered the adequacy of disclosures made in the financial statements
concerning the outcome of the Group's plans for acquisition of profitable
operations and the availability of future funding.
The financial statements have been prepared on a going concern basis, the
validity of which depends upon the success of the Group's future
operations and sufficient future funding being available. The financial
statements do not include all significant adjustments that would result
should the future operations and funding plan prove to be unsuccessful.
Had the going concern basis not been used, the adjustments necessary would
have a consequential significant effect on the net liabilities as at 31
December 2004 and the profit for the year then ended.
Disclaimer opinion
Because of the significance of the possible effect of the fundamental
uncertainty, the auditors are unable to form an opinion as to whether the
financial statements give a true and fair view of the state of the
Company's and the Group's affairs as at 31 December 2004 or of the profit
of the Group for the year then ended. In the auditors' opinion, the
financial statements give a true and fair view of the cash flows for the
year ended 31 December 2004. In all other respects, in the auditors'
opinion, the financial statements have been properly prepared in
accordance with the Companies Ordinance.
(2) PROFIT FROM OPERATIONS
This is stated after (charging) crediting:
2004 2003
HK$'000 HK$'000
Other revenue - 13
Other income 383 1,018
Material cost for service income (418) (491)
Depreciation (321) (488)
Staff costs (5,424) (6,726)
Other operating expenses (5,103) (5,714)
Holding gain on other investments 217 41
Profit on disposal of other investments 53 -
Provision for amount due from
unconsolidated subsidiaries - (91)
Reversal of losses of subsidiaries
on deconsolidation - 15,378
Guarantee income earned - 5,803
Gain on disposal of subsidiaries 21,492 -
Loss on disposal of an associate (1) -
Gain on disposal of property, plant
and equipment 7 5,672
(Provision for) Write-back of doubtful
trade and other receivables (3,571) 1,214
Gain on disposal of investment
properties - 700
Gain on discharge of bank and other
indebtedness 217,415 -
Write-back of provision under corporate
guarantees upon release of guarantees
by banks - 108,265
(3) EARNINGS PER SHARE
The calculation of basic earnings per share for the year ended 31 December
2004 was based on the consolidated profit of approximately HK$217,547,000
(2003: HK$96,232,000) and the weighted average of 473,668,922 shares (
2003: 310,071,347 shares) in issue during the year.
No diluted earnings per share is presented as there were no dilutive
potential ordinary shares in issue for the years 2004 and 2003.
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