KLN Logistics Group Limited — Earnings Release 2002

Jul 10, 2002

Listed Company Information

VITASOY INT'L<00345> - Results Announcement (Summary) Vitasoy International Holdings Limited announced on 10/7/2002: (stock code: 345) Year end date: 31/3/2002 Currency: HKD Auditors' Report: Unqualified Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/4/2001 from 1/4/2000 to 31/3/2002 to 31/3/2001 ('000) ('000) Turnover : 2,192,156 2,012,372 Profit/(Loss) from Operations : 132,296 177,814 Finance cost : (17,355) (12,951) Share of Profit/(Loss) of Associates : (3,308) 647 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit after Tax & MI : 86,931 128,146 % Change over Last Period : -32.16% EPS -Basic : 8.9 cents 13.2 cents -Diluted : 8.9 cents 13.1 cents Extraordinary (ETD) Gain/(Loss) : 0 0 Profit after ETD Items : 86,931 128,146 Final Dividend per Share : 5.1 cents 5.1 cents (Specify if with other options) : - - B/C Dates for Final Dividend : 29/8/2002 to 4/9/2002 bdi. Payable Date : 13/9/2002 B/C Dates for Annual General Meeting : 29/8/2002 to 4/9/2002 bdi. Other Distribution for Current Period : - B/C Dates for Other Distribution : - Remarks: 1. Profit after Taxation & MI is arrived at after charging the following non-recurring items: (A) Restructuring cost During the year, the Group has undergone a restructuring of its operations in the United States of America whereby the operations in the East Coast and West Coast were integrated into one. The San Francisco office was closed and its general and administrative functions have been consolidated into one office in Ayer, Massachusetts. The restructuring cost, amounting to HK$12,558,000, comprised severance payments and provision for the operating lease charges for the San Francisco office after its relocation. (B) Compensation for traffic accident During the year, three death lawsuits and several injury claims were filed against Nasoya Foods Inc. ("NFI"), one of the Company's subsidiaries, relating to a traffic accident that occurred in the prior year. NFI has established a provision for claims that was in excess of the insurance coverage amounting to HK$3,567,000, of which HK$2,006,000 has been paid before the year end. In the opinion of management, this matter is not anticipated to have a material adverse effect on the financial position, results of operations, or cash flows of the Group. 2. Earnings per share (a) Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to shareholders of HK$86,931,000 (2001: HK$128,146,000) and the weighted average number of 973,509,000 ordinary shares (2001: 974,463,000 ordinary shares) in issue during the year. (b) Diluted earnings per share The calculation of diluted earnings per share is based on the profit attributable to shareholders of HK$86,931,000 (2001: HK$128,146,000) and the weighted average number of 975,459,000 ordinary shares (2001: 975,131,000 ordinary shares) after adjusting for the effects of all dilutive potential ordinary shares. (c) Reconciliation 2002 2001 Number of Share Number of Shares '000 '000 Weighted average number of ordinary shares used in calculating basic earnings per share 973,509 974,463 Deemed issue of ordinary shares for no consideration arising from share options 1,950 668 ----- ------- Weighted average number of ordinary shares used in calculating diluted earnings per share 975,459 975,131 ======= ======= 3. Change in accounting policy In prior years, dividends declared or proposed were recognised as a liability in the accounting period to which they related. With effect from 1st April 2001, in order to comply with Statement of Standard Accounting Practice 9 (revised) "Events after the balance sheet date", issued by the Hong Kong Society of Accountants, the Group recognises dividends declared or proposed as a liability in the accounting period in which they are declared by the Directors (in the case of interim dividends) or approved by the shareholders (in the case of final dividends). Consequently, dividend income from subsidiaries is recognised as income in the Company's income statement in the accounting period in which the right to receive the dividend has been established. As a result of the new accounting policy, the Group's net assets as at the year end have been increased by HK$49,679,000 (2001: HK$49,701,000). There is no impact on the Group's profit attributable to shareholders for the years presented. The new accounting policy has been adopted retrospectively, with the opening balance of retained profits and the comparative information adjusted for the amounts relating to prior years. 4. Comparative figures Certain comparative figures have been restated in order to conform with current period's presentation.