G-Resources Group Limited — Interim / Quarterly Report 2002

Mar 25, 2002

PALADIN LIMITED

(Incorporated in Bermuda with limited liability)

ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER, 2001

The Board of Directors (the “Board”) of Paladin Limited (the “Company”) announces the unaudited interim results of the Company and its subsidiaries (the “Group”) for the six months ended 31 December, 2001.

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 31 December, 2001

Notes Turnover 1 Cost of sales and services Gross loss Other revenue Depreciation Administrative expenses Loss from operations Finance costs Net loss for the period Basic loss per share 3	Unaudited six months ended 31 December, 2001 2000 HK$’000 HK$’000 7,548 1,071 (7,481) (1,669) 67 (598) 113 795 (2,363) (3,097) (4,406) (5,771) (6,589) (8,671) (17,279) (44,971) (23,868) (53,642) HK(4.52) cents HK(10.15)cents

There were no recognised gains or losses other than the net loss for the period.

Notes:

1. Segment information

	Turnover		Loss from	operations
	1/7/2001 to	1/7/2000 to	1/7/2001 to	1/7/2000 to
	31/12/2001	31/12/2000	31/12/2001	31/12/2000
	HK$’000	HK$’000	HK$’000	HK$’000
Business segments
Continuing operations:
Textile trading	7,548	–	(6,589)	–
Handling services	–	1,071	–	(8,671)

More than 90% of the Group’s turnover was attributable to the operations carried out in Hong Kong.

2. Taxation

No provision for Hong Kong Profits Tax has been made in the condensed financial statements as the Company and its subsidiaries had no assessable profit for both periods.

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3. Basic loss per share

The calculation of the basic loss per share is based on the net loss for the period of HK$23,868,000 (2000: HK$53,642,000) and on 528,271,615 (2000: 528,271,615) ordinary shares in issue during the period.

MANAGEMENT DISCUSSION AND ANALYSIS

The principal activities of the Group are the trading of textiles and re-development of Bowen Hill Apartments. The re-development project is still under progress. The Company is still looking for new investment opportunities.

PROSPECT

The re-development of Bowen Hill Apartments will be completed within one year. The returns from the re-development will improve the Company financial position.

LIQUIDITY AND FINANCIAL RESOURCES

As at 31 December, 2001, net current liabilities of the Group was approximately HK$174 million (30 June, 2001: HK$153 million). The current ratio was 0.81 (30 June, 2001: 0.83). The cash and bank balance on hand was HK$217,000 (30 June, 2001: HK$154,000).

EMPLOYEES AND REMUNERATION POLICIES

As at 31 December, 2001, the Group employed a total of 7 employees. They were remunerated according to market conditions.

INTERIM DIVIDEND

The Directors do not recommend the payment of any interim dividend for the six months ended 31 December, 2001.

PURCHASE, SALE AND REDEMPTION OF LISTED SHARES

During the period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed shares.

AUDIT COMMITTEE

The interim financial report of the Group for the six months ended 31 December, 2001 has not been audited by the Company’s auditors, but has been reviewed by the audit committee.

CODE OF BEST PRACTICE

None of the directors of the Company is aware of any information that would reasonably indicate that the Company is not, or was not for any part of the six months ended 31 December, 2001, in compliance with the Code of Best Practice as set out in Appendix 14 of the Listing Rules.

PUBLICATION OF RESULT ON THE STOK EXCHANGE

Information Required by paragraphs 46(1) – 46(6) of Appendix 16 of the Listing Rules will be published on the website of the Stock Exchange in due course.

By order of the board Law Fong Acting Chairman

Hong Kong, 22 March, 2002

Please also refer to the published version of this announcement in the Hong Kong iMail.

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