Central Development Holdings Limited — Earnings Release 2004

Jun 7, 2004

Listed Company Information

Listed Company Information
SEAPOWER RES I<00269> - Results Announcement SEAPOWER RESOURCES INTERNATIONAL LIMITED announced on 7/6/2004: (stock code: 00269 ) Year end date: 31/3/2004 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2003 from 1/4/2002 to 31/3/2004 to 31/3/2003 Note ('000 ) ('000 ) Turnover : 9,996 16,881 Profit/(Loss) from Operations : (8,359) (4,902) Finance cost : (23,572) (45,948) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 1,299,079 (47,650) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.815 (0.0308) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 1,299,079 (47,650) 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 Annual General Meeting : 12/7/2004 to 16/7/2004 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1 BASIS OF PREPARATION a) Restructuring On 14 May 2003, the Company entered into a conditional Restructuring Agreement with the investor, Many Returns Limited, in relation to the Restructuring Proposal for the Company. The Restructuring Proposal involving, amongst other things, the Capital Restructuring, Debt Restructuring involving Schemes of Arrangement ("Schemes"), and the Subscription Agreement in relation to new shares and warrants of the Company was completed on 5 December 2003. Each of the Provisional Liquidators has been released and discharged as joint and several Provisional Liquidators of the Company with effect from the date of the completion in accordance with the orders of the Courts. b) Going concern basis In preparing the financial statements, the Directors of the Company have given careful consideration to the future liquidity of the Group in light of the Group's net current liabilities of approximately HK$1,427,000 as at 31 March 2004. MRL has agreed to provide and procure the provisions of working capital to the Company such that the Group will have sufficient working capital for its operations for 12 months after the completion of the Restructuring Agreement. MRL agrees to undertake to the Company that the Company will not dispose of any of its assets after completion if such disposal will result in the Company breaching paragraph 38 of its listing agreement with the Stock Exchange of Hong Kong Limited. In light of the above, the Directors of the Company have prepared the financial statements on a going concern basis that the Group would be able to meet the debts as and when they fall due and will have sufficient working capital to carry on its business for the foreseeable future. Should the Group be unable to continue in business as a going concern, adjustments would have to be made to restate the value of the assets to their recoverable amounts, to provide for any further liabilities which might arise and to reclassify non-current assts as current assets. The effects of these adjustments have not been reflected in the financial statements. 2 SEGMENT TURNOVER AND RESULTS 2004 2003 HK$'000 HK$'000 Segment turnover: Income from cold storage warehousing and logistics management 9,996 16,881 ========================= Segment results Cold storage warehousing and logistics management (2,615) 5,977 Property investment (73) (321) ========================== 3 PROFIT/(LOSS) BEFORE TAXATION Profit/(loss) before taxation is stated after crediting and charging: Notes 2004 2003 HK$'000 HK$'000 Crediting: Gain arising from debts discharged under Schemes of Arrangement (a) 632,718 - Gain on disposal of subsidiaries (b) 706,083 - Provision for bad and doubtful debts written back - 1 Charging: Loss on disposal of club membership - 1,340 Provision for bad and doubtful debts 801 3,046 Provisional Liquidators' remuneration - 6,425 Auditors' remuneration - Current year 225 - - Underprovision in previous years 393 3 Depreciation - Owned fixed assets 1,744 2,032 Staff costs including retirement costs of HK$58,576 (2003: HK$76,000) 5,848 5,598 Impairment loss on other land and buildings 1,364 - Loss on disposal of fixed assets (other than properties) 1,216 516 ====================== (a) GAIN ARISING FROM DEBTS DISCHARGED UNDER SCHEMES OF ARRANGEMENT 2004 2003 HK$'000 HK$'000 Waive of indebtedness 640,474 - Restructuring and scheme expenses (7,756) - ----------------------- 632,718 - ======================= The gain represented the indebtedness and the accrued interest payable by the Group waived by the scheme creditors upon the completion of the Schemes as detailed in note 1 (a) above, net of any restructuring and scheme expenses (b) GAIN ON DISPOSAL OF SUBSIDIARIES On 5 December 2003, the Company entered into a sale and purchase agreement with an independent third party to dispose of 37 directly and indirectly wholly owned subsidiaries at a consideration of HK$25. Gain of approximately HK$706,083,000 arose on the de-consolidation of these subsidiaries in the financial statements for the year ended 31 March 2004. 4 EARNINGS/(LOSS) PER SHARE The calculation of the basic earnings/(loss) per share is based on the net profit for the year of approximately HK$1,299,079,000 (2003: loss of HK$47,650,000) and on the weighted average number of 1,594,002,898 (2003: 1,547,042,829) shares in issue during the year. No amount has been presented for the diluted earnings per share for the year ended 31 March 2004 as the conversion of the outstanding warrants would reduce the loss per share from continuing ordinary operations. No diluted loss per share for 2003 was presented, as the exercise of the outstanding share options of the Company during the year ended 31 March 2003 would result in reducing loss per share.