Kingwell Group Limited — Earnings Release 2001

Apr 26, 2002

Listed Company Information

FT HOLDINGS<00559> - Results Announcement (Summary) FT Holdings International Limited announced on 26/4/2002: (stock code: 559) Year end date: 31/12/2001 Currency: HKD Auditors' Report: Neither Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2001 from 1/1/2000 to 31/12/2001 to 31/12/2000 ('000) ('000) Turnover : 124,027 145,827 Profit/(Loss) from Operations : (733) (5,452) Finance cost : (1,665) (1,340) Share of Profit/(Loss) of Associates : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 64 (8,577) % Change over Last Period : N/A EPS/(LPS)-Basic : 0.02 cent (3.10 cent) -Diluted : N/A (3.10 cent) Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 64 (8,577) Final Dividend per Share : NIL NIL (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 21/5/2002 to 24/5/2002 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1. Adoption of new and revised Statements of Standard Accounting Practice ("SSAPs") During the year, the Group has adopted, for the first time, the following new and revised SSAPs and related Interpretations issued by Hong Kong Society of Accountants: SSAP 9 (Revised): "Events after the balance sheet date" SSAP 14 (Revised): "Leases" SSAP 18 (Revised): "Revenue" SSAP 26: "Segment reporting" SSAP 28: "Provisions, contingent liabilities and contingent assets" SSAP 29: "Intangible assets" SSAP 30: "Business combinations" SSAP 31: "Impairment of assets" SSAP 32: "Consolidated financial statements and accounting for investments in subsidiaries" Interpretation 12: "Business combinations - subsequent adjustment of fair values and goodwill initially reported" Interpretation 13: "Goodwill - continuing requirements for goodwill and negative goodwill previously eliminated against/credited to reserves" 2. Prior year adjustment a. Impairment of goodwill During the year, the Group also adopted SSAP 31 "Impairment of assets". In accordance with SSAP 31, the Group is required to assess at each balance sheet date whether there are any indications that assets (including fixed assets, intangible assets and goodwill arising on acquisition of subsidiaries and associates) may be impaired, and if there are such indications, the recoverable amount of the assets has to be determined. As SSAP 31 is also applied to goodwill previously eliminated against consolidated reserves according to the provision of Interpretation 13, assessments of impairment on the goodwill arisen from the acquisition of subsidiaries have been made by referencing to their respective net asset values as at 31st December, 2000 and their future profitability. Accordingly, provision for impairment loss of HK$15,582,000 was required and a prior year adjustment has been put through to write down the carrying value of the goodwill as at 31st December, 2000. b. During the year, the Group adopted the revised SSAP 9 "Events after the balance sheet date". In accordance with the revised SSAP 9, the Group no longer recognises dividends proposed or declared after the balance sheet date as a liability at that date. This SSAP has been applied retrospectively. To comply with the revised SSAP, a prior year adjustment has been made, reclassifying the proposed final dividend payable to a minority shareholder of a subsidiary for the year ended 31st December, 2000 of HK$2,000,000, which was recognised as a liability in the prior year end, to the minority interests account of the balance sheet. This prior year adjustment has no effect on the net asset value of the Group as at 31st December, 2000. 3. Earnings/(Losses) per share The calculation of basic earnings/(losses) per share is based on the net profit attributable to shareholders for the year ended 31st December, 2001 of HK$64,000 (2000: loss of HK$8,577,000) and on the weighted average of 313,695,890 ordinary shares (2000: 276,797,131 shares) in issue during the year. No diluted earnings pre share has been presented for the current year as the effect of the share option outstanding was anti-dilutive for the year. The diluted losses per share for the year ended 31st December, 2000 is based on the net loss attributable to shareholders for the year of HK$ 8,577,000 and on the weighted average of 276,797,131 shares in issue during the year plus 634,594 dilutive shares deemed to have to have been issued for no consideration in respect of share options outstanding during the year. 4. Comparative figures As explained in remark 1 and 2 above, due to the adoption of certain new and revised SSAPs during the current year, the accounting treatment and presentation of certain items and balances in the financial statements have been revised to comply with the new requirements. Accordingly, certain prior year adjustments have been made and certain comparative amounts have been reclassified to conform with the current year's presentation.