China Everbright Limited — Earnings Release 2001

Apr 22, 2002

Listed Company Information

SHOUGANG CENT<00103> - Results Announcement (Summary) Shougang Concord Century Holdings Limited announced on 22/4/2002: (stock code: 103) Year end date: 31/12/2001 Currency: HKD 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 : 187,139 169,117 Profit/(Loss) from Operations : 22,543 7,402 Finance cost : (4,969) (10,465) Share of Profit/(Loss) of Associates : 4,733 4,590 Share of Profit/(Loss) of Jointly Controlled Entities : 7,198 8,542 Profit/(Loss) after Tax & MI : 20,061 4,739 % Change over Last Period : +323% EPS/(LPS)-Basic : 2.62 cents 0.62 cent -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : 20,061 4,739 Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: 1. Analysis of turnover by continuing and discontinued operations are as follows:- Year ended 31st December, 2001 2000 HK$'000 HK$'000 Continuing operations 187,139 142,422 Discontinued operations - 26,695 ---------- -------- 187,139 169,117 ========= ======== 2. Analysis of profit from operating activities by continuing and discontinued operations are as follows: Year ended 31st December, 2001 2000 HK$'000 HK$'000 Continuing operations 22,543 5,058 Discontinued operations - 2,344 ------------ -------- 22,543 7,402 ======== ======= 3. Discontinued operations (a) In prior years, the Group had a subsidiary (the "Subsidiary"), engaged in the trading and processing of metallic ores and metals, and certain jointly controlled entities (the "Entities"), engaged in ferroalloy processing and manufacturing activities in the People's Republic of China (collectively the "Business"). The directors considered that the continued over-capacity and decrease in demand for ferroalloy products in Mainland China would have a profound and significant impact on the Business. The situation was expected to be further aggravated by China's entry into the World Trade Organisation, which was expected to intensify competition. The outlook for the Business was therefore considered gloomy and no sign of recovery were foreseen for the time being. As such, the directors cautiously reassessed the Group's strategy in respect of the Business and decided to discontinue the Group's financial and operating involvement in the Entities effective from 3 May 1999 and the operations of the Subsidiary effective from 1 February 2000, respectively. The financial effects arising from the Business on the prior years' consolidated profit and loss account have been separately disclosed as discontinued operations. (b) On 10 December 1999, in view of the expected gloomy prospects for the electrical wire and accessories processing business due to intense price competition, the directors decided to discontinue the Group's business segment of electrical wire and accessories processing through the disposal thereof. The directors were of the opinion that the Group would be able to streamline its business and improve its financial health through the disposal. The disposal was approved by the Company's shareholders at an extraordinary general meeting held on 10 January 2000 and was completed on 14 January 2000. The financial effects of these operations on the prior years' consolidated profit and loss account have been separately disclosed as discontinued operations. (c) On 28 July 2000, in view of the continuing decline in profit margin and severe market competition experienced in the trading of industrial chemical products, the directors decided to terminate this business and dispose of the subsidiary and the equity interest in its jointly controlled entity which engaged in this business to an independent third party. The financial effects of these operations on the prior year's consolidated profit and loss account have been separately disclosed as discontinued operations. 4. Earnings per share The calculation of basic earnings per share is based on the net profit from ordinary activities attributable to shareholders of HK$20,061,000 (2000: HK$4,739,000) and 765,372,000 shares in issue during the years ended 31st December 2001 and 2000. Diluted earnings per share is not presented as there were no dilutive potential ordinary shares outstanding during the years ended 31st December 2001 and 2000.