Harbour Centre Development Limited — Earnings Release 2000

Aug 24, 2000

Listed Company Information

FE CONSORT INTL<0035> - Results Announcement Far East Consortium International Limited announced on 23/8/2000: (stock codes: Ord: 35 & War: 1084) Year end date: 31/3/2000 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/4/1999 from 1/4/1998 to 31/3/2000 to 31/3/1999 ('000) ('000) Turnover - Continuing : 593,260 668,858 - Discontinued : 28,415 - Operating Profit/(Loss) - Continuing : 79,277 20,300 - Discontinued : (5) - Total Operating Profit/(Loss) : 79,272 20,300 Share of Profit/(Loss) of Associated Companies : (20,645) 19,306 Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 33,744 25,055 % Change over Last Period : +35% EPS/(LPS)-Basic : 4 cents 3 cents -Diluted : - - Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 33,744 25,055 Final Dividend per Share : 2 cents 2 cents (Specify if with other options) : (scrip (scrip dividend with dividend with cash option) cash option) B/C Dates for Final Dividend : 25/9/2000 to 28/9/2000 bdi. Payable Date : 30/10/2000 B/C Dates for Annual General Meeting : 25/9/2000 to 28/9/2000 bdi. Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: (1) Basis of Presentation During the year ended 31st March, 2000, the Group has adopted the following new Statements of Standard Accounting Practice ("SSAP") issued by the Hong Kong Society of Accountants: SSAP 1 (Revised) Presentation of financial statements SSAP 2 (Revised) Net profit or loss for the period, fundamental errors and changes in accounting policies SSAP 10 (Revised) Accounting for investments in associates SSAP 24 Accounting for investments in securities Comparative figures have been reclassified to conform with the current year's presentation. The adoption of SSAP 1 (Revised) has also led to a reassessment of the accounting policy adopted for the pre-operating expenses. In previous years, pre-operating expenses were capitalised and amortised over a period of five years on a straight-line basis from the date of commencement of relevant business. Under SSAP 1 (Revised), pre-operating expenses should be recognised as expenses in the period in which they are incurred. This change in accounting policy has been applied restrospectively - resulting in pre-operating expenses amounting to HK$14,859,000, being written off to the income statement. The effect of this adjustment has been to decrease retained profits for the Group at 1st April, 1999 by HK$9,926,000 (1998: HK$Nil), and to decrease the profit for the year ended 31st March, 2000 by HK$Nil (1999: HK$4,933,000). Under SSAP 24, investments in securities are now classified as held-to-maturity (carried at amortised cost less provision for irrecoverable amounts), trading securities (carried at fair value, with valuation movements dealts with in the income statement) and other securities (carried at fair value, with valuation movements dealt with in equity). In prior years, the Group's investments were classified either as long-term (carried at cost less provision for permament diminution in value) or short-term (carried at the lower of cost and market value). The accounting treatment specified by SSAP 24 has been applied retrospectively resulting in decrease in retained profits and investments revaluation reserve at 1st April, 1999 of HK$26,415,000 (1998: HK$16,138,000) and HK$31,926,000 (1998:HK$Nil) respectively, and an increase in profit in the current year of HK$16,733,000 (1999: decrease of HK$10,278,000) and a revaluation decrease in the current year of HK$6,352,000 (1999: HK$31,926,000). (2) Turnover represents the aggregrate of gross rental and management fee income, proceeds from sales of properties, loan interest income and commitment fee received, income from hotel operation, and sales of boiler and cement products less returns and discounts. All material intra-group transactions are excluded. (3) The exercise of the subscription rights conferred by the warrants and share options would not dilute earning per share for both years ended 31st March, 1999 and 2000 and accordingly, no diluted earnings per share are shown. (4) Discontinued operation represents sale of cement products. For more details, please refer to the press announcement today.