Central Development Holdings Limited — Earnings Release 2002

Sep 23, 2003

Listed Company Information

SEAPOWER RES I<00269> - Results Announcement (Summary) SEAPOWER RESOURCES INTERNATIONAL LIMITED (Provisional Liquidators Appointed) announced on 23/09/2003: (stock code: 00269 ) Year end date: 31/03/2002 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2001 from 01/04/2000 to 31/03/2002 to 31/03/2001 Note ('000 ) ('000 ) Turnover : 165,272 191,767 Profit/(Loss) from Operations : (1,394,221) (116,735) Finance cost : (91,046) (121,902) Share of Profit/(Loss) of Associates : N/A 362 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (1,516,245) (239,054) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.9801) (0.1545) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (1,516,245) (239,054) 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 preparation a) Background and principal activities In view of the severe financial difficulties of the Group, Provisional Liquidators were appointed to the Company by the High Court of Hong Kong SAR ("Court") on 31 December 2001 to implement the restructuring for the Company. Provisional Liquidators were also appointed to the Company's four major wholly-owned subsidiaries, namely South East Asia Overseas Finance Limited ("SEAOF"), Yiu Fung Cold Storage & Warehousing Limited ("YFCSW"), Yiu Fai Warehousing Limited ("YFWL") and Seapower Resources Cold Storage & Warehousing Limited ("SRCSW") on 31 December 2001. Subsequently the Court ordered that SEAOF be wound-up on 20 February 2002, and YFCSW, YFWL and SRCSW be wound-up on 27 March 2002. The Provisional Liquidators of the Company disposed of the Group's logistics assets in Hong Kong prior to 31 March 2002. In order to reduce the liabilities of the Group, during the year, the Group had disposed of most of its properties including those properties previously used for the Group's cold storage operations in Hong Kong, and all investment properties (except for 24 townhouses located in Beijing, the PRC, as referred to heading "Prior year adjustments" below). All of the cold storage warehousing and logistics operations in Hong Kong were closed before the balance sheet date. As a result, the Group recorded losses of approximately HK$537.8 million and approximately HK$90.7 million arising on the disposal of the leasehold properties and investment properties, respectively, and a loss of approximately HK$648.3 million arising from the winding up of the above four subsidiaries for the year ended 31 March 2002. b) Going concern basis The Provisional Liquidators have prepared the financial statements on a going concern basis. 2 SEGMENT TURNOVER AND RESULTS 2002 2001 HK$'000 HK$'000 Segment turnover: Income from cold storage warehousing and logistics management 159,158 178,862 Rental income 6,114 12,905 ------------------------ 165,272 191,767 ======= ======= Segment results Cold storage warehousing and logistics management (529,906) (57,588) Property investment (152,761) (56,775) ========= ======== 3 LOSS FROM OPERATIONS Loss from operations is stated after crediting and charging: 2002 2001 HK$'000 HK$'000 Crediting: Rental income 6,114 12,906 Provision for bad and doubtful debts written back 918 - Charging: Provision for bad and doubtful debts 2,486 59,260 Provisional liquidators' remuneration 4,872 - Auditors' remuneration - Current year 814 1,146 - Under-provision in previous years 171 294 Depreciation - Owned fixed assets 32,404 49,364 - Assets held under finance leases 364 224 Staff costs including retirement costs of HK$2,867,000 (2001: HK$2,333,000) 70,322 73,681 Deficit arising on revaluation of cold storage warehouses - other land and buildings - 30,933 Deficit arising on revaluation of investment properties - 28,990 Rental expenses under operating leases 912 3,599 Provision for a claim 24,804 - Unrealised loss on other investments 263 - Loss on disposal of fixed assets (other than properties) 598 5,985 ------------------------- 4 LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of approximately HK$1,516,245,000 (2001: HK$239,054,000) and on 1,547,042,829 (2001: 1,547,042,829) shares in issue during the year. No amount has been presented for the diluted loss per share for the years ended 31 March 2002 and 2001 as the exercise of the outstanding share options of the Company during the years ended 31 March 2002 and 2001 would result in reducing loss per share. 5 PRIOR YEAR ADJUSTMENTS In March and May 1995, the Company's wholly-owned subsidiary, Pentagon Profits Limited ("Pentagon Profits"), entered into two sale and purchase agreements ("Purchase Agreements") in the PRC to acquire 24 townhouses under construction located in Beijing, PRC for total consideration of approximately HK$96 million. This consideration was paid in full by the Group in 1995. However, the Certificate of Housing Ownership has never been obtained by Pentagon Profits for these townhouses. A legal opinion has been obtained, by the Provisional Liquidators of the Company subsequent to the balance sheet date which expresses considerable doubt as to whether Pentagon Profits will ever obtain title to the townhouses. As a result, the Provisional Liquidators of the Company have fully provided for these townhouses which were previously classified as investment properties with a carrying value of approximately HK$135 million as at 31 March 2001. The effects of the retrospective prior year adjustments include (i) the reversal of previously recorded asset revaluation surpluses of approximately HK$39 million by reducing an amount of approximately HK$27.7 million brought forward from the period prior to 1 April 2000 and by eliminating the revaluation surplus of approximately HK$11.3 million in the year ended 31 March 2001, respectively, as and when they arose and were previously recorded in the asset revaluation reserve, and (ii) charging approximately HK$96.2 million, which represented the amounts paid by the Group in the previous years, to accumulated losses brought forward from 1 April 2000. 6 COMPARATIVE FIGURES With a review of financial statements' presentation, certain items in the financial statements were reclassified which would result in a more appropriate presentation of events or transactions. Accordingly, comparative figures have been reclassified to conform with the current year's presentation.