Hony Media Group — Earnings Release 2003

Apr 23, 2004

Listed Company Information

Listed Company Information
CHINA STRATEGIC<00235> - Results Announcement (Summary) China Strategic Holdings Limited announced on 23/04/2004: (stock code: 00235 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2003 from 01/01/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) (Restated) Turnover : 2,884,493 3,601,735 Profit/(Loss) from Operations : 94,111 (527,705) Finance cost : (50,712) (109,460) Share of Profit/(Loss) of Associates : (175,734) (137,574) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (189,528) (474,134) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.23) (0.76) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (189,528) (474,134) 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. BASIS OF PREPARATION The financial statements have been prepared under the historical cost convention as modified for the valuation of investments in securities and in accordance with accounting principles generally accepted in Hong Kong. 2. ADOPTION OF HONG KONG FINANCIAL REPORTING STANDARDS In the current year, the Group has adopted for the first time, Statement of Standard Accounting Practice ("SSAP") 12 (Revised) "Income Taxes" issued by the Hong Kong Society of Accountants ("HKSA"). The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. In previous years, partial provision was required to be made for deferred tax using the income statement liability method, i.e. a liability was recognised in respect of timing differences arising, except where those timing differences were not expected to reverse in the foreseeable future. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. In the absence of any specific transitional requirements in SSAP 12 (Revised), the new accounting policy has been applied retrospectively. Comparative amounts for 2002 have been restated accordingly. As at 1st January, 2002, deficit has been reduced by HK$3,934,000, minority interests have been increased by HK$3,729,000 and deferred tax assets have been increased by HK$7,663,000 respectively, which are the cumulative effect of the change in policy on the results for the periods prior to 2002. The effect of the change was a decreased charge to income taxes for the year ended 31st December, 2002 of HK$5,791,000. The loss shared by the minority interests for the year ended 31st December, 2002 was also decreased by HK$2,818,000. 3. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of approximately HK$189,528,000 (2002: HK$474,134,000) and on the weighted average of 829,734,016 (2002: adjusted weighted average of 620,259,682 after taking into account of effect of rights issue carried out by the Company in August, 2002) ordinary shares in issue during the year. No disclosure of the diluted loss per share has been shown for the year ended 31st December, 2003 and 2002 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, 2003 (2002: Nil).