Emperor Capital Group Ltd. — Earnings Release 1998

May 24, 1999

Listed Company Information

LUKS INDUSTRIAL<0366> - Results Announcement Luks Industrial Company Limited announced on 21/5/1999: (stock code: 366) Year end date: 31/12/1998 Currency: HKD Last Current Corresponding Period Period from 1/1/1998 from 1/1/1997 to 31/12/1998 to 31/12/1997 ('000) ('000) Turnover/Interest Income : 166,488 106,957 Profit-Continuing Operations - Operating Profit/(Loss) : (154,309) (94,233) - Exceptional Items : (230,046) (169,195) - Discontinued Operations : - - Total Operating Profit/(Loss) : (384,355) (263,428) Share of Profit/(Loss) of Associated Companies : 110,680 76,845 Share of profits less losses of jointly controlled entities : (58,256) (8,083) Profit/(Loss) after Tax & MI : (299,641) (188,001) % Change over Last Period : N/A EPS/(LPS)-Basic : (22.5 cents) (19.1 cents) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (299,641) (188,001) 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 : 17/6/1999 to 23/6/1999 bdi. Other Distribution for Current Period : NIL B/C Dates for Other Distribution : N/A Remarks: (1) Exceptional items 1998 1997 HK$'000 HK$'000 Provision for doubtful debts (74,134) (78,269) Losses on disposal of equity interests in subsidiaries (35,064) (101,471) Gain/(loss) on disposal of certain equity interests in associated companies (2,869) 10,545 Provision for interests in jointly controlled entities (13,083) - Provision for interests in associated companies (12,440) - Provision for interests in long term investments (92,456) - --------- ---------- (230,046) (169,195) ========= ========== (2) Prior year adjustment In prior years, certain jointly controlled entities were consolidated as subsidiaries or accounted for as contractual joint venture from their respective dates for acquisition. The policy of accounting for interests in jointly controlled entities was changed during the year as a result of the adoption of the provisions of Statement of Standard Accounting Practive 2.121 "Accounting for Interests in Joint Ventures" issued by the Hong Kong Society of Accountants in March 1998. In restating the audited financial statements for 1997 on the basis of the new accountin policy, there were not effects on the shareholders' equity and retained profit as at 31 December 1997. (3) Taxation Hong Kong profits tax has been provided at the rate of 16% (1997: 16.5%) on the estimated assessable profits arising in Hong Kong during the year. Taxes on profits assessable elsewhere have been calculated at the rates of taxation prevailing in the countries in which the Group operates. GROUP 1998 1997 HK$'000 HK$'000 (Restated) Provision for the year: Hong Kong - (250) Elsewhere - - ------- ------ - (250) ------- ------ Prior year overprovision: Hong Kong - 5,614 Elsewhere - - ------- ------ - 5,614 ------- ------ Associated companies: Hong Kong (1,416) - Elsewhere (334) (1,276) ------- ------- (1,750) (1,276) ------- ------- Taxation (charge)/refund for the year (1,750) 4,088 ======= ======= (4) Loss per share The calculation of basic and loss per share is based on the net loss attributable to shareholders of HK$299,641,000 (1997: HK$188,001,000) and the weighted average of 1,331,515,286 (1997: 983,602,352) ordinary shares in issue, after adjusting for the rights issue of share during the year. There is no dilutive effect on the basic loss per share for the years ended 31 December 1998 and 31 December 1997 under the revised Statement of Standard Accounting Practice 2.105 "Earnings Per Share" issued by the Hong Kong Society of Accountants in May 1998. For more details, please refer to the press announcement today.