IRC Limited — Earnings Release 1999

Nov 12, 1999

Listed Company Information

LAI SUN DEV<0488> - Results Announcement Lai Sun Development Company Limited announced on 12/11/1999: (stock code: 488) The accounts which contain the following results are modified by the Company's auditor. For more details, please refer to the press announcement to be issued by the Company on 15/11/1999. Year end date: 31/7/1999 Currency: HK$ Last Current Corresponding Period Period from 1/8/1998 from 1/8/1997 to 31/7/1999 to 31/7/1998 Turnover/Interest Income : 1,752,093,000 3,538,210,000 Profit-Continuing Operations - Operating Profit/(Loss) : (1,000,882,000) 468,961,000 - Exceptional Items : (5,691,191,000) - - Discontinued Operations : - - Total Operating Profit/(Loss) : (6,692,073,000) 468,961,000 Share of Profit/(Loss) of Associated Companies : (305,396,000) 17,290,000 Share of Profit/(Loss) of Jointly Controlled Entities : (710,000) - Profit/(Loss) after Tax & MI : (6,832,423,000) 309,382,000 % Change over Last Period : N/A EPS/(LPS)-Basic : (2.26) 0.24 -Diluted : N/A 0.23 Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (6,832,423,000) 309,382,000 Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) Exceptional items: 1999 1998 HK$'000 HK$'000 Provisions for diminution in values of properties under development 2,937,127 - Provisions for diminution in values of associated companies holding properties under development 311,000 - Provisions for deposits paid for acquisition of properties 452,500 - Provisions for contingent loss in respect of put options relating to the disposal of a subsidiary in prior year 855,000 - Provisions for contingent losses in respect of profit guarantees (1) 178,200 - Provision for contingent loss in respect of guarantee given to a bank (2) 228,000 - Loss on disposal of a long term listed investment 302,382 - Provision for diminution in values of long term unlisted investments 426,982 - --------- ------- 5,691,191 - ========= ======= (1) These relate to certain guaranteed returns given to the respective independent third parties in connection with the disposal of certain investment properties and a subsidiary in prior years. (2) This relates to guarantee given to provide counter-indemnity to a bank for facilities granted by it to an associated company engaged in the operations of duty free merchandise. (2) Earnings / (Loss) per share The calculation of basic and diluted earnings/(loss) per share are based on: 1999 1998 HK$'000 HK$'000 Earnings/(loss) Earnings/(loss) used in basic earnings/(loss) per share calculation (6,832,423) 309,382 =========== ======= Adjustment for the dilution effect of Lai Fung (2) N/A (10,740) ________ ________ Earnings/(loss) used in diluted earnings/(loss) per share N/A 298,642 calculation ======= ======= Number of shares '000 '000 Weighted average number of ordinary shares in issue during the year used in basic and diluted earnings/(loss) per share calculation (1) 3,016,739 1,301,356 ========= ========= (1) The weighted average number of ordinary shares of the Company in issue during the year is arrived at by adjusting the number of ordinary shares in issue prior to the rights issue of 3 February 1999 with a factor of 1.2063. The weighted average number of ordinary shares of the Company in issue during 1998 is arrived at by adjusting the number of ordinary shares in issue prior to the rights issue of 27 July 1998 with a factor of 1.007 and then by a factor of 1.2603 to reflect the rights issue of 3 February 1999. (2) Diluted loss per share for current year has not been shown as the warrants, convertible bonds and convertible note outstanding during the year of the Group have an anti-dilutive effect on the basic loss per share. Diluted earnings per share for the year ended 31 July 1998 has been restated in accordance with the provisions of the Statement of Standard Accounting Practice No. 5 (Revised) issued by the Hong Kong Society of Accountants in May 1998.