Emperor Capital Group Ltd. — Earnings Release 2003

Apr 27, 2004

Listed Company Information

Listed Company Information
LUKS IND(GROUP)<00366> - Results Announcement Luks Industrial (Group) Limited announced on 27/4/2004: (stock code: 00366 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2003 from 1/1/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 250,295 217,720 Profit/(Loss) from Operations : 52,366 64,767 Finance cost : (12,871) (6,966) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : (4,567) 1,449 Profit/(Loss) after Tax & MI : 20,183 52,358 % Change over Last Period : -61.4 % EPS/(LPS)-Basic (in dollars) : 0.064 0.17 -Diluted (in dollars) : 0.062 N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 20,183 52,358 Final Dividend : 6 cents 6 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 24/5/2004 to 28/5/2004 bdi. Payable Date : 9/6/2004 B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Earnings per share The calculation of basic earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$20,183,000 (2002: HK$52,358,000), and the weighted average of 313,607,482 (2002: 306,183,000) ordinary shares in issue during the year. The calculation of diluted earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$20,183,000. The weighted average number of ordinary shares used in the calculation is the 313,607,482 ordinary shares in issue during the year, as used in the basic earnings per share calculation; the weighted average of 11,504,587 ordinary shares assumed to have been issued at no consideration on the deemed exercise of all warrants outstanding during the year; and the weighted average of 2,551,431 ordinary shares assumed to have been issued at no consideration on the deemed exercise of all share options during the year. A diluted earnings per share for the year ended 31 December 2002 has not been disclosed, as the share options and warrants outstanding during that year had an anti-dilutive effect on the basic earnings per share for that year. 2. Summary of Auditors' Report "Included in the consolidated balance sheet of the Group as at 31 December 2003 is goodwill with a carrying amount of approximately HK$277 million, which arose from the acquisition of a subsidiary during the year. The subsidiary is engaged in the manufacture and sale of health care products, the business of which is still at its start-up stage and is yet to generate significant revenue. The directors are of the opinion, based on a business valuation performed as at the balance sheet date, the recoverable amount of the goodwill exceeds its carrying amount in the consolidated balance sheet and no provision for impairment is necessary. We have however been unable to obtain sufficient reliable evidence to satisfy ourselves as to the reasonableness of the bases and assumptions used by the directors in arriving at the business valuation and therefore as to whether the carrying amount of the goodwill is fairly stated at the balance sheet date. Any adjustment to the goodwill would have a consequential impact on the Group's net assets as at 31 December 2003 and results for the year then ended, and on the amount of the interests in subsidiaries in the Company's balance sheet as at 31 December 2003, and the loss of the Company for the year then ended, and the related disclosures thereof in the financial statements. Except for any adjustments that might have been found necessary had we been able to satisfy ourselves as to the reasonableness of the bases and assumptions in the business valuation used by the directors to determine the recoverability of the goodwill and as to the amounts of the Company's interests in subsidiaries, in our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 31 December 2003 and of the profit and cash flows of the Group for the year then ended and have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance. In respect alone of the limitations on our work as set out in the basis of opinion section of this report, we have not obtained all the information and explanations that we considered necessary for the purpose of our audit."