Matrix Holdings Limited — Earnings Release 2003

Mar 16, 2004

Listed Company Information

MATRIX HOLDINGS<01005> - Results Announcement Matrix Holdings Limited announced on 16/03/2004: (stock code: 01005 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2003 from 01/01/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 500,357 395,644 Profit/(Loss) from Operations : 158,631 116,567 Finance cost : (1,153) (1,626) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 131,166 101,939 % Change over Last Period : +28.7 % EPS/(LPS)-Basic (in dollars) : 0.36 0.39 -Diluted (in dollars) : 0.23 0.18 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 131,166 101,939 Final Dividend : $0.09 $0.09 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 16/04/2004 to 20/04/2004bdi. Payable Date : 26/04/2004 B/C Dates for Annual General Meeting : 16/04/2004 to 20/04/2004bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Earnings per share The calculation of basic and diluted earnings per share is based on the following data : Earnings 2003 2002 HK$'000 HK$'000 Earnings for the purposes of basic earnings per share 131,166 101,939 Effect of dilutive potential ordinary shares: Interest on convertible loan stock 1,091 1,612 -------- -------- Earnings for the purposes of diluted earnings per share 132,257 103,551 ======== ======== Number of shares 2003 2002 '000 '000 Weighted average number of ordinary shares for the purposes of basic earnings per share 366,830 262,366 Effect of dilutive potential ordinary shares: Convertible loan stock 217,890 322,354 --------- --------- Weighted average number of ordinary shares for the purposes of diluted earnings per share 584,720 584,720 ========= ========= 2. SUMMARY OF THE AUDITORS' REPORT The followings are the extraction from the auditors' report with modification: Without qualifying our opinion, we draw attention to the basis of preparation of financial statements that in October 1999 there was a court judgment regarding the ownership of Matrix Plastic Manufacturing (Zhongshan) Co., Ltd. ("MPMZ"), an indirect wholly-owned major subsidiary of the Company, in connection with a claim by a trade creditor, which has subsequently been settled. The Company has made an application for a judicial review of the judgment regarding the ownership of MPMZ. The Directors have sought independent legal advice and are of the opinion that the aforesaid judgment can be overruled and will have no material impact on the financial position and operations of the Group. 3. THE BASIS OF PREPARATION OF FINANCIAL STATEMENTS In October 1999, there was a court judgment regarding the ownership of Matrix Plastic Manufacturing (Zhongshan) Co., Ltd. ("MPMZ"), an indirect wholly-owned major subsidiary of the Company, in connection with a claim by a trade creditor which had subsequently been settled. The Company has made an application for a judicial review of the judgment regarding the ownership of MPMZ. In 2002, the Company acknowledged receipt of notice from Zhongshan Intermediate People's Court that Guangdong High People's Court has transferred the Company's application to Zhongshan Intermediate People's Court for processing. The directors have sought independent legal advice and are of the opinion that the aforesaid judgment can be overruled and will have no material impact on the financial position and operations of the Group. Accordingly, MPMZ is still treated as indirect subsidiary of the Company.