Eminence Enterprise Limited — Earnings Release 2004

Jul 26, 2004

Listed Company Information

Listed Company Information
ASIA ALLIANCE<00616> - Results Announcement Asia Alliance Holdings Limited announced on 26/07/2004: (stock code: 00616 ) Year end date: 31/03/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2003 from 01/01/2002 to 31/03/2004 to 31/12/2002 Note ('000 ) ('000 ) Turnover 3 : 5,083 70,354 Profit/(Loss) from Operations 3,4: (55,162) (109,562) Finance cost : (1,960) (37) Share of Profit/(Loss) of Associates : (4) (13,991) Share of Profit/(Loss) of Jointly Controlled Entities : (72) (65) Profit/(Loss) after Tax & MI : (57,737) (191,424) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) 5 : (0.97) (4.98) -Diluted (in dollars) 5 : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (57,737) (191,424) 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 : NIL Current Period B/C Dates for Other Distribution : N/A Remarks: 1. CHANGE OF FINANCIAL YEAR-END DATE On 1 September 2003, the board of directors of the Company resolved to change the financial year-end date of the Company from 31 December to 31 March to align the financial year-end date with that of Easyknit. The financial statements therefore cover a fifteen month period from 1 January 2003 to 31 March 2004. The corresponding amounts shown for the consolidated income statement, consolidated statement of changes in equity, consolidated cash flow statement and related notes cover a twelve month period from 1 January 2002 to 31 December 2002 and therefore may not be comparable with amounts shown for the current period. 2. ADOPTION OF HONG KONG FINANCIAL REPORTING STANDARDS AND CHANGE IN ACCOUNTING POLICY In the current period, the Group has adopted, for the first time, the Hong Kong Financial Reporting Standards ("HKFRS") - Statement of Standard Accounting Practice ("SSAP") 12 (Revised) issued by the Hong Kong Society of Accountants ("HKSA"). The term of HKFRS is inclusive of SSAPs and Interpretations approved by the HKSA. The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. The adoption of SSAP 12 (Revised) has no material effect on the results for the current or prior accounting periods. Accordingly, no prior period adjustment has been required. 3. SEGMENTS INFORMATION For management purposes, the Group is currently organised into three main operating divisions -wireless communication business, communication solutions consultancy services and Internet operations. These divisions are the bases on which the Group reports its primary segment information. Segment information about these businesses is presented below: For the fifteen months ended 31 March 2004 Segment Turnover result Consolidated HK$'000 HK$'000 HK$'000 Continuing operations: Wireless communication business 3,982 (31,873) Communication solutions consultancy services1,101 (2,856) Internet operations - (304) ------- ---------- 5,083 (35,033) ======= ========== Segment result (35,033) Interest income 70 Allowance for amounts due from associates (note) (317) Unallocated corporate expenses (19,882) ---------- Loss from operations (55,162) ========== Note: The amount is related to the segment of wireless communication business. For the year ended 31 December 2002 Turnover ----------------------------- External Inter- Segment segment Total result Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Continuing operations: Wireless communication business 953 - 953 (29,704) Communication solutions consultancy services 1,131 480 1,611 (4,122) Internet operations - - - (598) Discontinued operations: Sanitary fixtures and fittings 38,860 26 38,886 443 Hardware, industrial and consumer products 20,258 - 20,258 (926) Drainage, plumbing and engineering contracting services 9,152 - 9,152 (1,907) -------- ------ ------- --------- 70,354 506 70,860 (36,814) Eliminations - (506) (506) (180) -------- ------ ------- --------- 70,354 - 70,354 (36,994) ========= ====== ======= ========= Segment result (36,994) Interest income 1,624 Allowance for a loan to Acme Landis Operations Holdings Limited, a former subsidiary (note) (42,115) Unallocated corporate expenses (32,077) ----------- Loss from operations (109,562) =========== Note: The amount is related to the segments of sanitary fixtures and fittings, hardware, industrial and consumer products and drainage, plumbing and engineering contracting services. 4. LOSS FROM OPERATIONS include the following items: 1.1.2003 1.1.2002 to to 31.3.2004 31.12.2002 HK$'000 HK$'000 Impairment loss recognised in respect of property, plant and equipment (9,971) (785) Impairment loss recognised in respect of long term investments (3,900) - Allowance for a loan to Acme Landis Operations Holdings Limited, a former subsidiary (3,297) (42,115) Allowance for doubtful debts (1,155) (6,082) Allowance for amounts due from associates (317) - 5. LOSS PER SHARE The calculation of the basic loss per share is based on the following data: 1.1.2003 1.1.2002 to to 31.3.2004 31.12.2002 HK$'000 HK$'000 Loss for the purposes of basic loss per share (57,737) (191,424) ========== ============ 1.1.2003 1.1.2002 to to 31.3.2004 31.12.2002 Number of shares Weighted average number of shares for the purposes of basic loss per share 59,376,993 38,433,085 =========== =========== The denominator for the purposes of calculating basic loss per share of year 2002 has been adjusted to reflect the consolidation of shares in September 2003 on the basis that forty shares were consolidated into one share and the rights issue of shares in September 2003 and March 2004. The calculation of diluted loss per share has not been disclosed as the exercise of the Company's outstanding share options would reduce the loss per share for both accounting periods.