IRC Limited — Earnings Release 2001

Apr 20, 2001

Listed Company Information

LAI SUN DEV<0488> - Results Announcement Lai Sun Development Company Limited announced on 20/4/2001: (stock code: 488) Please refer to the press announcement for the details of the audit committee's review report on the interim financial statement, to be issued by the Company on 23/4/2001. Year end date: 31/7/2001 Currency: HK$ (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/8/2000 from 1/8/1999 to 31/1/2001 to 31/1/2000 Turnover : 801,244,000 983,103,000 Profit/(Loss) from Operations : (718,750,000) (1,349,959,000) Finance cost : (305,604,000) (436,463,000) Share of Profit/(Loss) of Associates : (84,697,000) (45,706,000) Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (1,125,883,000) (1,338,116,000) % Change over Last Period : N/A EPS/(LPS)-Basic : (0.30) (0.38) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (1,125,883,000) (1,338,116,000) Interim Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Interim 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. LOSS PER SHARE The calculations of basic loss per share are based on: Six months ended 31/1/2001 31/1/2000 (Unaudited) (Unaudited) HK$'000 HK$'000 Loss used in basic loss per share calculation 1,125,883 1,338,116 ========================= '000 '000 Weighted average number of ordinary shares in issue during the period used in basic loss per share calculation 3,746,002 3,536,002 ========================= The diluted loss per share for the current and prior periods has not been presented because any potential ordinary shares of the Group outstanding during these periods had an anti-dilutive effect on the basic loss per share for these periods. 2. The Loss from Operations for the current period is arrived at after charging a loss on deemed disposal of interest in a listed subsidiary with details as follows: On 28th November, 2000, Lai Fung Holdings Limited ("Lai Fung"), by then a listed subsidiary of the Company, elected to mandatorily convert all the outstanding convertible bonds issued by its wholly-owned subsidiary, Lai Fung Overseas Finance Limited, which are convertible into shares of HK$0.1 each in the share capital of Lai Fung ("Lai Fung Shares"), as constituted by a trust deed dated 5th January, 1994 ("LF Convertible Bonds"). The total outstanding LF Convertible Bonds in the aggregate amount of US$120,385,000 were converted into new Lai Fung Shares at a conversion price of HK$0.464 per share, in accordance with the terms and conditions of the LF Convertible Bonds. On 10th January, 2001, a total of 2,023,713,337 new Lai Fung Shares were allotted and issued pursuant to the mandatory conversion. As a result of the allotment and issue of such new Lai Fung Shares to the bondholders pursuant to the mandatory conversion, the Company's shareholding in Lai Fung, by way of dilution, fell from approximately 74.49 per cent. of the issued share capital of Lai Fung before the mandatory conversion to approximately 25.40 per cent. of the issued share capital of Lai Fung as enlarged by the issue of the new Lai Fung Shares. Accordingly, immediately following the allotment and issue of such new Lai Fung Shares, Lai Fung ceased to be a subsidiary and became an associate of the Company. The financial statements of Lai Fung and its subsidiaries were then deconsolidated from and had, since then, been equity accounted for in the consolidated financial statements of the Company. As a result of the conversion, a loss on deemed disposal of interest in Lai Fung of approximately HK$1,006,211,000 was charged to the profit and loss account. In addition, a sum of approximately HK$1,201,812,000 was released from the various reserves upon the deemed disposal of interest in Lai Fung. 3. COMPARATIVE AMOUNTS Due to the adoption of Statements of Standard Accounting Practice No.1 "Presentation of Financial Statements" and No.2 "Net Profit or Loss for the Period, Fundamental Errors and Change in Accounting Polices" during current period, the presentation of the consolidated profit and loss account, consolidated balance sheet and certain supporting notes have been revised to comply with the new requirements. Accordingly, certain comparative amounts have been reclassified to conform with the current period's presentation.