Emperor Capital Group Ltd. — Earnings Release 1999

May 23, 2000

Listed Company Information

LUKS INDUSTRIAL<0366> - Results Announcement Luks Industrial Company Limited announced on 22/5/2000: (stock code: 366) Year end date: 31/12/1999 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/1/1999 from 1/1/1998 to 31/12/1999 to 31/12/1998 ('000) ('000) Turnover - Continuing : 103,625 122,488 - Discontinued : - - Operating Profit/(Loss) - Continuing : 796,040 (371,889) - Discontinued : - - Total Operating Profit/(Loss) : 796,040 (371,889) Share of Profit/(Loss) of Associated Companies : - 110,680 Share of Profit/(Loss) of Jointly Controlled Entities : (21,419) (56,285) Profit/(Loss) after Tax & MI : 794,434 (288,972) % Change over Last Period : N/A EPS/(LPS)-Basic : $2.54 ($1.09) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 794,434 (288,972) Final Dividend per Share : NIL NIL (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : NIL B/C Dates for Other Distribution : N/A Remarks: (1) Turnover Turnover represents the net invoiced value of goods sold, after allowances for returns and trade discounts. The Group's turnover for the year arose from the following activities: 1999 1998 HK$'000 HK$'000 Sale of electronic products 14,827 57,551 Sales of plywood and other wood products 1,067 307 Sales of cement 87,731 64,630 -------- -------- 103,625 122,488 ======= ======= (2) Other Revenue 1999 1998 HK$'000 HK$'000 Unrealized holdings gains/(losses) for other investments 924,080 (26,856) Gross rental income 9,477 11,403 Interest income 18,805 19,045 Dividend income from unlisted investment 7,000 - Others 1,215 915 ----------- ----------- 960,577 4,507 ========= ========= (3) Other Operating Expenses 1999 1998 HK$'000 HK$'000 Provision for doubtful debts (5,018) (74,134) Provision against interests in jointly controlled entities (1,938) (13,083) Provision against interests in associates (12,470) (12,440) Goodwill and exchange fluctuation reserve released on loss on disposal/provision against interests in long term investments (13,497) (92,456) Loss on disposal of interest in a subsidiary - (35,064) Loss on disposal of interest in associate (20,837) (2,869) Loss on disposal of investment properties - (12,047) Provision against properties under development (42,291) - ------------- ------------- (96,051) (242,093) ========== ========== (4) Earnings/ (Loss) Per Share The calculation of basic earnings/(loss) per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$794,434,000 (1998: net losses of HK$288,972,000) and the weighted average of 312,168,471 (1998: 266,303,057, after adjusting for the consolidation of five shares of HK$0.10 each into one share of HK$0.50 each during 1999) ordinary shares in issue during the year. The diluted earnings/(losses) per share for the year ended 31 December 1999 and 31 December 1998 have not been calculated as the Company's options would have resulted in an antidilutive effect during the years. (5) Prior Year Comparative Figures The Group adopted SSAP No. 24 "Accounting for Investments in securities" and Interpretation No.9 "Accounting for Pre-operating Costs", both issued by the Hong Kong Society of Accountants, for the first time in financial year 1999. In prior years, other investments were stated at cost and they are now revalued to fair value, by reference to market price, at the balance sheet date with the unrealized holding gains/losses credited/charged to the profit and loss account. Pre-operating costs were previously capitalized and amortized over a period of eight years, they are now expensed to the profit and loss account when incurred. The comparative figures for 1998 have been restated to account for the retrospective effects of the adoption of SSAP No. 24 and Interpretation No. 9. For more details, please refer to the press announcement today.