Hony Media Group — Earnings Release 2005

Apr 7, 2006

Listed Company Information

Listed Company Information
CHINA STRATEGIC<00235> - Results Announcement China Strategic Holdings Limited announced on 07/04/2006: (stock code: 00235 ) Year end date: 31/12/2005 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 Note ('000 ) ('000 ) Turnover : 38,459 27,141 Profit/(Loss) from Operations : (78,310) (152,897) Finance cost : (17,630) (17,434) Share of Profit/(Loss) of Associates : 42,864 (40,567) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (95,200) (179,244) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.11) (0.21) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (95,200) (179,244) 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 consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair values. The consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS(s)") issued by the Hong Kong Institute of Certified Public Accountants (" HKICPA"). 2. APPLICATION OF HONG KONG FINANCIAL REPORTING STANDARD/CHANGES IN ACCOUNTING POLICIES In 2005, the Group has applied, for the first time, a number of new HKFRS (s), Hong Kong Accounting Standards ("HKAS(s)") and Interpretations ( hereinafter collectively referred to as "new HKFRSs") issued by the HKICPA that are effective for accounting periods beginning on or after 1st January, 2005. The application of these new HKFRSs has resulted in a change in the presentation of the consolidated income statement, consolidated balance sheet and consolidated statement of changes in equity. In particular, the presentation of minority interests have been changed. The changes in presentation has been applied retrospectively. The adoption of the new HKFRSs has resulted in changes to the Group's accounting policies in the following areas that have an effect on how the results for the current and prior accounting periods are prepared and presented: (i) HKFRS 3 "Business Combinations" (ii) HKAS 32 "Financial Instruments: Disclosure and Presentation" (iii) HKAS 39 "Financial Instruments: Recognition and Measurement" (iv) HKAS 17 "Leases" (v) HK Interpretation 2 " The Appropriate Accounting Policies for Hotel Properties" and HKAS 16, "Property, Plant and Equipment" 3. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of approximately HK$95,200,000 (2004: HK$179,244,000) and on the weighted average of 881,595,087 (2004: 877,471,799) ordinary shares in issue during the year. For the year ended 31st December, 2005, no diluted loss per share has been presented as there were no dilutive potential shares in issue. For the year ended 31st December, 2004, no disclosure of diluted loss per share has been shown as the exercise of the share option 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, 2005 (2004: Nil). 5. COMPARATIVE INFORMATION In accordance with the application of HKFRS 5 "Non-current assets held for sale and discontinued operations" issued by the HKICPA, certain income statement items for the year ended 31st December, 2004 have been regrouped under profit for the year from discontinued operations for the year ended as 31st December, 2004. HK Interpretation 2 ("HK-Int 2") "The Appropriate Accounting Policies for Hotel Properties" clarifies the accounting policy for owner-operated hotel properties. In previous periods, the self-operated hotel properties of the Group's associate were carried at cost less impairment amounts and were not subject to depreciation. HK-Int 2 requires owner-operated properties to be classified as property, plant and equipment in accordance with HKAS 16, "Property, Plant and Equipment" and therefore be accounted for either using the cost model or the revaluation model. The Group's associate has resolved to account for these hotel properties using the cost model. In the absence of any specific transitional provisions in HK -Int 2, the new accounting policy has been applied retrospectively. Comparative figures have been restated. An adjustment of HK$3,192,000 has been made to decrease the share of net assets of associates and to increase the deficits at 31st December, 2004 after the application of HKAS 16 by the associates. The results of the reclassification and restatement are from the New HKFRSs are as follows: HKD'000 Turnover 96,262 Cost of sales (60,381) Other income 401 Distribution costs (21,056) Administrative expenses (8,295) Other expenses (154) --------- 6,777 Less: Loss on disposal (5,266) --------- Effect on discontinued operation 1,511 ======== Effect on hotel properties 3,192 =========