CHINA STATE CONSTRUCTION DEVELOPMENT HOLDINGS LIMITED — Earnings Release 2001

Apr 29, 2002

Listed Company Information

UNIVERSAL APPLI<00419> - Results Announcement (Summary) Universal Appliances Limited announced on 26/4/2002: (stock code: 419) Year end date: 31/12/2001 Currency: Hong Kong Dollars 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) (Restated) Turnover : 128,875 119,275 Profit/(Loss) from Operations : (155,337) (561,719) Finance cost : (3,443) (7,077) Share of Profit/(Loss) of Associates : - (15,032) Share of Profit/(Loss) of Jointly Controlled Entities : (6,930) (3,628) Profit/(Loss) after Tax & MI : (138,404) (493,730) % Change over Last Period : N/A EPS/(LPS)-Basic : (5.0 cents) (18.2 cents) -Diluted : - - Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (138,404) (493,730) Final Dividend per Share : NIL NIL (Specify if with other options) : - - B/C Dates for Final Dividend : - Payable Date : - B/C Dates for (-) General Meeting : - Other Distribution for Current Period : - B/C Dates for Other Distribution : - Remarks: 1. Principal Accounting policies (a) Basis of preparation These accounts have been prepared in accordance with accounting principles generally accepted in Hong Kong and comply with accounting standards issued by the Hong Kong Society of Accountants ("HKSA"). They have been prepared under the historical cost convention, except for short-term investments. In the current year, the Group adopted the following Statements of Standard Accounting Practice ("SSAP") issued by the HKSA which are effective for accounting periods commencing on or after 1st January 2001: SSAP 9 (revised) : Events after the balance sheet date SSAP 14 (revised) : Leases SSAP 26 : Segment reporting SSAP 28 : Provisions, contingent liabilities and contingent assets SSAP 29 : Intangible assets SSAP 30 : Business combinations SSAP 31 : Impairment of assets SSAP 32 : Consolidated financial statements and accounting for investments in Subsidiaries On the adoption of SSAP29, costs incurred on development projects are recognised as an intangible asset where the technical feasibility and intention of completing the product under development has been demonstrated and the resources are available to do so, costs are identifiable and there is an ability to sell or use the asset that will generate probable future economic benefits. Such development costs are recognised as an asset and amortised on a straight-line basis over a period of not more than 5 years to reflect the pattern in which the related economic benefits are recognised. Development costs that do not meet the above criteria are expensed as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. (b) Comparative figures Certain comparative figures have been reclassified to conform with the current year's presentation as a result of the adoption of the new SSAPs which became effective in the current year. 2. Discountinued operations The Group discontinued its business of the manufacture and distribution of telecommunication and video-media products, and the trading of computer monitors and related products during the year ended 31st December 2000. 3. Turnover Group 2001 2000 HK$'000 HK$'000 (Restated) Continuing operations Sales of goods 100,325 73,974 Leasing income 670 - Provisions of services 27,880 15,779 ---------------------- 128,875 89,753 Discontinued operations Sales of goods - 29,522 ----------------------- Turnover 128,875 119,275 ======================= 4. Profit / (loss) from operation Group 2001 2000 HK$'000 HK$'000 (Restated) Operating (loss) from operations: Continuing operations (155,337) (482,336) Discontinued operations - (79,383) -------------------------- (155,337) (561,719) ========================== 5. Operating loss Operating loss is stated after crediting and charging the following: Group 2001 2000 HK$'000 HK$'000 (Restated) Crediting Net other operating expenses including: Net gain on dilution of interest in subsidiaries 6,338 - Write-back of provision against doubtful debts 8,228 - Gain on conversion of investment in preference shares - 27,200 Net gain on disposal of investment in preference shares - 40,745 Net gain on disposal of subsidiaries - 10,876 Net gain on disposal of fixed assets - 496 Gain on disposal of an associated company - 7,679 Gain on disposal of short-term investments 353 - ====== ====== Charging Cost of inventories sold 62,844 121,593 Cost of services provided 9,998 8,343 Depreciation: Owned assets 15,670 14,761 Assets held under finance leases - 500 ------- ------ 15,670 15,261 ------- ------ Auditors' remuneration 1,500 2,700 Staff costs (excluding directors' remuneration) 44,746 52,773 Contributions to defined contribution Mandatory Provident Fund (excluding contributions for directors) 1,994 146 Less: Forfeited contributions (506) (1,023) ------ ------- 1,488 (877) ------ ------- Operating lease rentals: Land and buildings 17,162 16,143 Equipment 286 1,137 ------ ------- 17,448 17,280 ------ ------- Net other operating expenses including: Amortisation of intangibles: Film rights 5,985 7,372 Goodwill 2,598 3,340 Development costs 2,967 3,195 Research and development costs: Current year expenditure - 3,313 Write off of deferred development costs - 1,582 Provision for impairment of goodwill - 94,862 Write off of fixed assets 5,663 3,950 Provision against inventories 1,251 1,878 Write off of inventories - 3,437 Provision for bad and doubtful debts 34,554 44,230 Write off of bad and doubtful debts 4,568 - Net unrealised loss of short-term investments 8,134 294,132 Loss on disposal of short-term investments - 8,821 Net loss on disposal of subsidiaries 1,171 - Net loss on dilution of interest in subsidiaries - 3,922 Net loss on disposal of fixed assets 112 - Provision for impairment of investment securities 23,032 - Exchange losses, net 202 3,981 Loss on discontinued operations: Net loss on disposal of subsidiaries - 14,177 Write off of fixed assets, inventories and development cost - 7,084 Loss on disposal of scrap inventories - 18,888 ---------------------- - 40,149 ====================== 6. Loss per share The calculation of the basic loss per share is based on the Group's loss attributable to ordinary shareholders of HK$138,404,000 (2000: HK$493,730,000 (restated)) and on the weighted average of 2,774,293,000 (2000: 2,710,537,000) ordinary shares in issue during the year. No diluted loss per share is shown for the two years ended 31st December 2001 and 2000 as the share options and convertible preference shares outstanding had an anti-dilutive effect on the basic loss per share for both years. 7. Dividend The directors do not recommend the payment of dividend for the year ended 31 December 2001 (2000: nil) 8. Taxation No provision for Hong Kong and overseas profits tax has been made in the accounts as the Group did not have any assessable profit for the year (2000: Nil, the tax credit represents over provision of Hong Kong profits tax in prior years). For more details, please refer to the press announcement today.