Cocoon Holdings Limited — Earnings Release 2000

Aug 23, 2000

Listed Company Information

21 CN CYBERNET<0241> - Results Announcement 21 CN CyberNet Corporation Limited announced on 23/8/2000: (stock code: 241) Year end date: 31/3/2000 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/4/1999 from 1/4/1998 to 31/3/2000 to 31/3/1999 ('000) ('000) Turnover - Continuing : 15,462 15,376 - Discontinued : 3,590 37,378 Operating Profit/(Loss) - Continuing : (49,005) (134,014) - Discontinued : (17,313) (45,450) Total Operating Profit/(Loss) : (66,318) (179,464) Share of Profit/(Loss) of Associated Companies : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (66,318) (179,538) % Change over Last Period : N/A N/A EPS/(LPS)-Basic : (10 cents) (28 cents) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (66,318) (179,538) Final Dividend per Share : NIL NIL (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 20/9/2000 to 25/9/2000 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) Basis of presentation Certain comparative figures in the prior year's accounts have been reclassified or extended to conform with the current year's presentation as a result of the adoption of the Statement of Standard Accounting Practice ("SSAP") 2.101, "Presentation of financial statements", SSAP 2.102, "Net profit or loss for the period, fundamental errors and changes in accounting policies", and SSAP 2.124, "Accounting for investments in securities". The adoption of SSAP 2.101, SSAP 2.102 and SSAP 2.124 have no effect on loss attributable to shareholders of the Group. On 9th June 1998, 21CN CyberNet Corporation Limited (formerly known as Easy Concepts International Holdings Limited) (the "Company") became the holding company of Easy Concepts Limited ("Easy Concepts") pursuant to a scheme of arrangement under section 166 of the Hong Kong Companies Ordinance (the "Scheme"). The Company's shares are then listed on The Stock Exchange of Hong Kong Limited. The principal steps of the Scheme were as follows: (i) the share capital of Easy Concepts was reduced by cancelling and extinguishing the 64,797,832 shares of Easy Concepts, with nominal value of HK$1 per share, then in issue; (ii) the share premium account of Easy Concepts was cancelled; (iii) the authorised share capital of Easy Concepts was restored to its former amount of HK$100,000,000 of shares of HK$1 each and the issued share capital was restored to its former amount by the creation of 64,797,832 new shares of Easy Concepts, which were allotted and issued, credited as fully paid, to Easy Concepts (BVI) Limited ("Easy Concepts BVI"), the Company's wholly owned subsidiary incorporated in the British Virgin Islands, by applying the credit arising in the accounts of Easy Concepts as a result of the reduction of its capital; (iv) the balance of the credit arising in the accounts of Easy Concepts as a result of the reduction of capital and the cancellation of its share premium account, after the application of the amount referred to in (iii) above was credited to contribution surplus; (v) Easy Concepts BVI allotted and issued to the Company one new share in Easy Concepts BVI; and (vi) in consideration for the cancellation and extinguishment of the issued shares of Easy Concepts, the Company allotted and issued 647,978,320 new shares, with nominal value of HK$0.10 per share, credited as fully paid, to the holders of the cancelled shares of Easy Concepts on a ten for one basis. The Company with its subsidiaries had been treated as a continuing entity and accordingly the consolidated financial statements have been prepared and presented on the basis that the current group structure had been in existence for the year ended 31st March, 1999. (2) Discontinued operation represented the cessation of department stores operation during the year ended 31st March, 2000. (3) Continuing operating loss included:- 2000 1999 HK$'000 HK$'000 Other income: Net refund of retirement benefit costs 581 - Gain on disposal of properties held for sale 480 - Remuneration waived by a director - 18,800 --------- ---------- 1,061 18,800 ====== ====== Other expenses: Deficit arising on revaluation of investment properties 25,350 64,928 Provision for diminution in value of fixed assets 5,967 - Provision for litigation 6,850 - Loss on disposal of investment properties 182 17,131 Write off of deposits paid for property acquisitions - 54,000 --------- ------- 38,349 136,059 ====== ======= (4) Loss per share The calculation of basic loss per share is based on the Group's loss attributable to shareholders of HK$66,318,000 (1999: HK$179,538,000) and 647,978,320 (1999: 647,978,320) shares in issue during the year. As the Company has no dilutive potential ordinary shares for the years ended 31st March, 1999 and 2000, no diluted loss per share is presented.