G-Resources Group Limited — Earnings Release 2002

Oct 29, 2002

Listed Company Information

DNA SECURITY<01051> - Results Announcement (Summary) Credit Card DNA Security System (Holdings) Limited announced on 29/10/2002: (stock code: 1051) Year end date: 30/6/2002 Currency: HK$ Auditors' Report: Unqualified Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/7/2001 from 1/7/2000 to 30/6/2002 to 30/6/2001 ('000) ('000) Turnover : 28,221 30,071 Profit/(Loss) from Operations : (47,887) (67,007) Finance cost : (1,637) (2,549) Share of Profit/(Loss) of Associates : Nil Nil Share of Profit/(Loss) of Jointly Controlled Entities : Nil Nil Profit/(Loss) after Tax & MI : (31,006) (92,483) % Change over Last Period : N/A EPS/(LPS)-Basic : (2.23 cents) (25.32 cents) -Diluted : Nil Nil Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : (31,006) (92,483) Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 25/11/2002 to 27/11/2002 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1) Adoption of Statements of Standard Accounting Practice ("SSAP"s) In the current year, the Group has adopted, for the first time, a number of new and revised Statement of Standard Accounting Practice ("SSAP") issued by the Hong Kong Society of Accountants. Adoption of these new and revised SSAPs has led to a number of changes in the Group's accounting policies. In addition, the new and revised SSAPs have introduced additional and revised disclosure requirements, which have been adopted in these financial statements. Comparative amounts for the prior year have been restated in order to achieve a consistent presentation. 2) An analysis of turnover and profit/(loss) from continuing operations and discontinued operations Continuing Discontinued Operations Operations HK$'000 HK$'000 Turnover 19,432 8,789 Profit/(Loss) (18,627) (12,379) In June 2002, the Group disposed of its entire interests in Chung Hwa Food & Beverages Limited, Chung Hwa Food & Beverages Holdings Limited, Harbin Dongfang (Hong Kong) Food Company Limited, Harbin HDL (New Zealand) Limited, Xiamen Dongchen Food Industry Company Limited, Full Support Technology Limited and other subsidiaries, which were mainly engaged in the manufacture and sales of food products and provision of internet consultancy services. Upon the completion of the disposal, the business segments of manufacture and sales of food products and provision internet consultancy services were regarded as discontinued operations. In July 2002, the Group disposed of its entire interest in Fu Yuk DNA Holistic Limited and other subsidiaries, which were engaged in the sales of health products. Upon the completion of the disposal, the business segment of sales of health products will be regarded as discontinued operations. 3) Loss per share The calculation of the basic loss per share is based on the net loss for the period from 1st July, 2001 to 30th June 2002 of HK$31,006,000 (1.7.2000 to 30.6.2001: net loss of HK$92,483,000) and on the weighted average number of 1,392,643,841 (1.7.2000 to 30.6.2001: weighted average number of 365,206,874) ordinary shares in issue, after adjustment for the effect of the consolidation of the Company's shares. No diluted loss per share has been presented for the current year as the exercise of the share options and conversion of the convertible notes would result in a decrease in the loss per share. 4) Taxation 1.7.2001 1.7.2000 to to 30.6.2002 30.6.2001 ------------ ----------- HK$'000 HK$'000 The (charge) credit comprises: Over / (Under) provision of Hong Kong Profits Tax in prior year 117 (251) ------------ ------------ 117 (251) ========== ========== No provision for taxation has been made in the financial statements as the Group had incurred tax loss for the year. 5) Profit / (Loss) from Operations 1.7.2001 1.7.2000 to to 30.6.2002 30.6.2001 HK$'000 HK$'000 Loss from operations has been arrived at after charging: Staff costs: Directors' remumeration 11,774 27,530 Other staff costs 12,692 13,830 --------- ----------- 24,466 41,360 Auditors' remuneration: Current year 1,085 1,100 Overprovision in prior year (20) - Depreciation: Owned assets 3,999 4,238 Assets held under hire purchase contracts 21 - Loss on disposal of property, plant and equipment 2,325 2,342 Operating lease payments in respect of rented premises - 8,424 Unrealised loss on investments in securities - - Write-off of pre-operating expenses - - and after crediting: Interest income 115 903 Rental income from properties under operating leases, net of outgoings of (2001: HK$10,000) 156 533 ========== ======== 6) Pursuant to resolutions passed at a special general meeting of the Company on 28th November, 2001, the Group's financial restructuring was carried out and completed on 28th November, 2001, which involved the restructuring of the share capital: 1) Every 40 issued shares of HK$0.01 each in the capital of the Company was consolidated into one new share of HK$0.4 each. 2) The par value of the issued shares was then reduced form HK$0.4 each to HK$0.01 each.