Hony Media Group — Earnings Release 2002

Apr 23, 2003

Listed Company Information

CHINA STRATEGIC<00235> - Results Announcement China Strategic Holdings Limited announced on 23/4/2003: (stock code: 00235 ) Year end date: 31/12/2002 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2002 from 1/1/2001 to 31/12/2002 to 31/12/2001 Note ('000 ) ('000 ) Turnover : 3,601,735 3,234,404 Profit/(Loss) from Operations : (448,532) (901,688) Finance cost : (109,460) (81,462) Share of Profit/(Loss) of Associates : (137,574) (17,997) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (477,107) (598,730) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.77) (1.28) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (477,107) (598,730) 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 (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. ADOPTION OF NEW AND REVISED STATEMENTS OF STANDARD ACCOUNTING PRACTICE During the year, the Group has adopted, for the first time a number of new and revised Statements of Standard Accounting Practice ("SSAPs") issued by the Hong Kong Society of Accountants, which has resulted in the adoption of the following new and revisd accounting policies. The adoption of these SSAPs has resulted in a change in the format of presentation of the cash flow statement and the statement of changes in equity but has had no material effect on the results for the current or prior accounting periods. Accordingly, no prior period adjustment has been required. Foreign Currencies ------------------ The revisions to SSAP 11 "Foreign Currency Translation" have eliminated the choice of translating the income statements of overseas subsidiaries/associates at the closing rate for the year, the policy previously followed by the Group. They are now required to be translated at an average rate. This change in accounting policy has not had any material effect on the results for the current or prior accounting periods. Discontinuing Operations ------------------------ SSAP 33 "Discontinuing Operations" is concerned with the presentation of financial information regarding discontinuing operations and replaces the requirements previously included in SSAP 2 "Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Polices". Under SSAP 33, financial information relating to the discontinuing operation are disclosed separately from the point at which either a binding sale agreement is entered into or a detailed plan for the discontinuance is announced. The adoption of SSAP 33 has resulted in the identification of the Group's segment of toll highway operation, consumer goods, electronic products, heavy industries, property investment and hotel operation as discontinuing operations in the current year. Employee Benefits ------------------ In the current year, the Group has adopted SSAP 34 "Employee Benefits", which introduces measurement rules for employee benefits, including retirement benefit plans. Because the Group's participates only in defined contribution retirement benefit schemes, the adoption of SSAP 34 has not had any material impact on the financial statements. 2. CHANGES IN ACCOUNTING POLICIES In 2000, the Group acquired subsidiaries engaging in hotel operations and the hotel properties are stated at the open market value based on professional valuations at the balance sheet date. During the year, the directors determined that with effect from 1st January, 2002, hotel properties are stated at cost less accumulated impairment loss for the purpose of better presentation on the Group's hotel properties. The change in accounting policy has been applied retrospectively, resulting in no material effect on the results for the prior accounting years. Accordingly, no prior year adjustment has been required. 3. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of HK$477,107,000 (2001: HK$598,730,000) and on the adjusted weighted average of 620,259,682 (2001:adjusted 468,933,386) ordinary shares in issue during the year, after adjustment for the effect of the rights issue of the Company. No disclosure of the diluted loss per share has been shown for the year ended 31st December, 2002 and 2001 as the exercise of the share options and warrants would result in a decrease in loss per share. 4. FINAL DIVIDEND The directors do not recommend the payment of a final dividend for the year ended 31st December, 2002 (2001: Nil; Dividend).