G-Resources Group Limited — Earnings Release 2003

Dec 30, 2003

Listed Company Information

PALADIN<00495> - Results Announcement (Summary) Paladin Limited announced on 30/12/2003: (stock code: 00495 ) Year end date: 30/06/2003 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2002 from 01/07/2001 to 30/06/2003 to 30/06/2002 Note ('000 ) ('000 ) Turnover : 10,338 18,576 Profit/(Loss) from Operations : (51,344) (32,418) Finance cost : (12,841) (5,305) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (64,185) (37,723) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.121) (0.071) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (64,185) (37,723) 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 Annual General Meeting : 03/02/2004 to 06/02/2004bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS In preparing the financial statements, the directors have given careful consideration to the future liquidity of the Group in the light of its net current liabilities of HK$173,504,000 and deficit in shareholders' funds of HK$61,792,000 as at 30 June 2003. The Group is dependent upon the financial support of its bankers and other lenders. In November 2003, the Group reached loan agreements with new bankers and other lender for refinancing the overdue HK$ term loan (together with the accrued interest and other bank charges). In addition, the Group is now in the process of soliciting new bankers to refinance the overdue US$ term loan and the directors are of the opinion that the Group can successfully solicit new bankers within a short period of time. With the new source of funds, the directors estimate that the properties under development will be complete and available for sales or pre-sale by May 2004. Against this background, the directors consider that, with the continuing support of the Group's bankers and other lenders, the Group will be able to complete the development and to meet in full its financial obligations as they fall due for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. 2. BASIC LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of HK$64,185,000 (2002: HK$37,723,000) and on 528,271,615 (2002: 528,271,615) ordinary shares in issue during the year. 3. EXTRACT FROM AUDITORS' REPORT Fundamental uncertainty relating to the going concern basis In forming our opinion, we have considered the adequacy of the disclosures made in Remark 2 to the financial statements which explains that the Group is dependent upon the financial support of its bankers and other lenders. In November 2003, the Group reached loan agreements with new bankers and other lender for refinancing the overdue HK$ term loan (together with the accrued interest and other bank charges). In addition, the Group is now in the process of soliciting new bankers to refinance the overdue US$ term loan and the directors are of the opinion that the Group can successfully solicit new bankers within a short period of time. With the new source of funds, the directors estimate that the properties under development will be complete and available for sales or pre-sale by May 2004. Against this background, the directors consider that, with the continuing support of the Group's bankers and other lenders, the Group will be able to complete the development and to meet in full its financial obligations as they fall due for the foreseeable future. The financial statements have been prepared on a going concern basis, the validity of which depends upon future funding being available. The financial statements do not include any adjustments that would result from failure to obtain such funding. We consider that the fundamental uncertainty has been adequately disclosed in the financial statements and our opinion is not qualified in this respect.