3SBio Inc. — Earnings Release 2001

Apr 24, 2002

Listed Company Information

HK CHINESE LTD<00655> - Results Announcement (Summary) Hongkong Chinese Limited announced on 24/4/2002: (stock code: 655) Year end date: 31/12/2001 Currency: HK$ Auditors' Report: Neither Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2001 from 1/1/2000 to 31/12/2001 to 31/12/2000 ('000) ('000) Turnover : 1,263,674 1,765,759 Profit/(Loss) from Operations : (182,146) 376,799 Finance cost : N/A N/A Share of Profit/(Loss) of Associates : 32 3,367 Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (192,480) 361,827 % Change over Last Period : N/A EPS/(LPS)-Basic : (14.2 cents) 26.8 cents -Diluted : (14.2 cents) 26.8 cents Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (192,480) 361,827 Final Dividend per Share/Distribution per Share : 3.0 cents 6.25 cents (Specify if with other options) : N/A N/A B/C Dates for Final Dividend & Distribution : 22/5/2002 to 28/5/2002 bdi. Payable Date : 14/6/2002 B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1. Included in profit from operations for the year ended 31 December 2000 were the following significant items: (a) A profit of HK$72 million arising from the disposal of the Group's investment in the listed shares of the Hong Kong Exchanges and Clearing Limited ("HKEx"). As part of the Group's securities and commodity brokerage businesses, the Group held seats in the Stock Exchange of Hong Kong and the Hong Kong Futures Exchange. In accordance with the schemes of demutualisation and merger of these exchanges implemented during 2000, the Group was given trading rights in these exchanges as well as listed shares in HKEx in exchange for the exchange seats it previously held. The listed shares in HKEx were disposed of during 2000, as a result of which the above-mentioned profit arose. (b) A profit of HK$189 million on disposal of the Group's 50% equity interest in CRC Protective Life Insurance Company Limited, a then associate of the Group, to an independent third party. 2. The goodwill on which impairment losses were made represents goodwill arising on acquisition of subsidiaries previously eliminated against reserves: (a) Impairment loss of HK$72,500,000 is in relation to goodwill arising from the acquisition of The Hongkong Chinese Bank, Limited ("HKCB") and Hong Kong Housing Loan Limited ("HKHL") and is calculated with reference to the conditional sales agreement entered into by the Company on 31 October 2001 (the "Sale Agreement") in relation to the disposal of HKCB and its subsidiaries ("HKCB Group) and a portfolio of mortgage loans of HKHL. The Sale Agreement was completed on 17 January 2002. For the year ended 31 December 2001, the aggregate profit after taxation of HKCB Group and HKHL amounted to HK$74,617,000 (2000: HK$173,689,000). (b) Impairment loss of HK$65,121,000 represents the write off to the profits and loss account of the goodwill arising from the acquisition of Lippo Asia Limited and its subsidiaries ("LAL Group") after considering the estimated recoverable amount of the business of the LAL Group, which is expected to be adversely affected by the disposal of HKCB. 3. (Loss)/earnings per share Basic (loss)/ earnings per share has been calculated on the basis of the loss attributable to shareholders of HK$192,480,000 (2000: profit of HK$361,827,000) and the number of 1,351,537,000 shares (2000: weighted average number of 1,350,754,000 shares) in issue during the year. Diluted (loss)/earnings per share has been calculated based on (i) the loss attributable to shareholders of HK$192,480,000 (2000: profit of HK$361,827,000); and (ii) the adjusted weighted average number of 1,351,659,000 shares (2000: 1,350,899,000 shares) after taking into account the weighted average number of 122,000 (2000: 145,000) ordinary shares which are deemed to have been issued at no consideration on exercise of the share options at the beginning of the year. 4. Turnover Turnover represents interest income for the year. Accordingly, the figure for the prior year has been restated. Previously, total operating income was reported as turnover for the purpose of Teletext Form.