Melbourne Enterprises Limited — Earnings Release 2002

Dec 19, 2002

MELBOURNE ENTERPRISES LIMITED

AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2002

NOTES

1. Segment Information

			2002		2001
			HK$'000		HK$'000
(a)	Turnover
	Property investment		77,245		81,122
(b)	Contribution to operating profit
	Property investment		54,538		41,652

Turnover represents gross rental and service income from investment properties.

As the Group's principal business is property rental in Hong Kong, an analysis of the Group’s turnover and profit by business and geographical segments has not been presented.

2. Operating Profit

Operating profit is stated after crediting and charging the followings:

				2002			2001
				HK$'000			HK$'000
Crediting:
	Interest income			581			1,164
Charging:
	Depreciation			50			55

3. Taxation

Hong Kong profits tax is provided at the rate of 16% (2001: 16%) on the estimated assessable profits for the year.

4. Dividends

				2002		2001
				HK$'000		HK$'000
Interim dividend paid of HK$0.50(2001: HK$0.50) per share				12,500		12,500
Final dividend proposed of HK$1.00 (2001: HK$0.80) per share				25,000		20,000
				37,500		32,500

The Board proposes a final dividend of HK$1.00 per share for the year ended 30 September 2002. Dividend warrants will be posted to shareholders by 29 January 2003.

5. Earnings per Share

The calculation of earnings per share is based on profit attributable to shareholders of HK$46,415,000 (2001: HK$35,296,000) and the 25,000,000 shares in issue throughout the two years ended 30 September 2002.

MANAGEMENT DISCUSSION AND ANALYSIS

Group Results

Net profit for the year amounted to HK$46.4 million (2001: HK$35.3 million), an increase of 31%. The increase was mainly due to decrease in property maintenance expenses and the recovery of certain bad debts. Turnover for the year amounted to HK$77.2 million, representing a decrease of 5% as compared to last year.

Significant Investments

The Group's investment properties at Melbourne Plaza and Kimley Commercial Building in Central were approximately 76% and 63% let.

Liquidity and Financial Resources

Basically, the Group's working capital requirement was financed by its rental income. As at 30 September 2002, the Group possessed cash and bank balances totalling HK$44.8 million (2001: HK$31.2 million). During the year, the Group does not need any borrowings or overdraft facilities.

Employees and Remuneration Policies

The Group employs a total of 18 employees. The Group recognises the importance of the strength of its human resources for its success. Pay rates of employees are maintained at competitive levels and promotion and salary increments are assessed on a performance related basis.

CLOSURE OF REGISTER OF MEMBERS

The register of members will be closed from 22 to 24 January 2003, both days inclusive, during which period no transfer of shares will be registered. To ensure their entitlement to the final dividend, shareholders are reminded to lodge their transfers not later than 4:00 p.m. on Tuesday, 21 January 2003 with Computershare Hong Kong Investor Services Limited, 17/F., Hopewell Centre, 183 Queen's Road East, Hong Kong.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

The Company has not redeemed any of its shares during the year. Neither the Company nor its subsidiary company has purchased and sold any of the Company's shares during the year.

AUDIT COMMITTEE

An Audit Committee has been established for the purpose of reviewing and providing supervision of the Company's financial reporting process and internal controls.

CODE OF BEST PRACTICE

The Company has complied with the Code of Best Practice as set out in Appendix 14 of the Listing Rules of The Stock Exchange of Hong Kong Limited throughout the year except that the non-executive directors are not appointed for a specific term as they are subject to retirement by rotation and re-election at annual general meeting in accordance with the Articles of Association of the Company.

PUBLICATION OF ANNUAL REPORT ON THE INTERNET

The Annual Report of the Group containing all the information required by the Listing Rules will be published on the Stock Exchange's website at www.hkex.com.hk in due course.

Dato' Dr. Cheng Yu Tung

Chairman

Hong Kong, 19 December 2002

“Please also refer to the published version of this announcement in South China Morning Post and Hong Kong Economic Journal both dated 20 December 2002.”

Please refer to the published version of this announcement in SCMP.