Melbourne Enterprises Limited — Earnings Release 2003

Dec 18, 2003

MELBOURNE ENTERPRISES LIMITED

AUDITED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2003

NOTES

1. Segment Information

Turnover represents gross rental and service income from investment properties. As the Group's principal business is property investment 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:

3. Taxation

Hong Kong profits tax is provided at the rate of 17.5% (2002: 16%) on the estimated assessable profits for the year.

4. Dividends

The Board proposes a final dividend of HK$0.80 per share for the year ended 30 September 2003. Dividend warrants will be posted to shareholders by 11 February 2004.

5. Earnings per Share

The calculation of earnings per share is based on profit attributable to shareholders of HK$25,767,000 (2002: HK$46,415,000) and the 25,000,000 shares in issue throughout the two years ended 30 September 2003.

MANAGEMENT DISCUSSION AND ANALYSIS

Group Results

Net profit for the year amounted to HK$25.8 million (2002: HK$46.4 million), a decrease of 44%. The decrease was mainly due to irrecoverable rents and provision for advances to an unlisted investment. Turnover for the year amounted to HK$69.6 million, representing a decrease of 10% as compared to last year.

Significant Investments

The Group's investment properties at Melbourne Plaza and Kimley Commercial Building in Central were approximately 73% and 67% let.

Liquidity and Financial Resources

Basically, the Group's working capital requirement was financed by its rental income. As at 30 September 2003, the Group had cash and bank balances totalling HK$41.2 million (2002: HK$44.8 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 4 to 6 February 2004, 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, 3 February 2004 with Computershare Hong Kong Investor Services Limited, 17/F., Hopewell Centre, 183 Queen's Road East, Hong Kong.

PURCHASE, SALE OR REDEMPTION OF SHARES

Neither the Company nor its subsidiary company has purchased, sold or redeemed 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 on 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, 18 December 2003

"Please also refer to the published version of this announcement in the South China Morning Post and Hong Kong Economic Journal both dated 19 December 2003."

P

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