PegBio Co., Ltd. — Audit Report / Information 2004

Jul 26, 2004

Listed Company Information

Listed Company Information
XIN CORP<01141> - Results Announcement Xin Corporation Limited announced on 26/7/2004: (stock code: 01141 ) Year end date: 31/3/2004 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2003 from 1/4/2002 to 31/3/2004 to 31/3/2003 Note ('000 ) ('000 ) Turnover : 22,531 38,092 Profit/(Loss) from Operations : (27,308) (33,383) Finance cost : (4,951) (5,380) 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 : (30,898) 37,432 % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.04) 0.16 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (30,898) 37,432 Final Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. TURNOVER Turnover represents the net invoiced value of goods sold, after allowances for returns and trade discounts. 2. EXTRACT OF AUDITORS' REPORT Fundamental uncertainty relating to the going concern basis In forming their opinion, the auditors have considered the adequacy of the disclosures made in note 2 to the financial statements concerning the adoption of the going concern basis on which the financial statements have been prepared. As explained in note 2 to the financial statements, the Group is currently undertaking a number of measures to improve its financial and current liquidity position. The financial statements have been prepared on a going concern basis, the validity of which depends upon ongoing support of the Group's holding companies, bankers and other creditors, the availability of additional external funding and the attainment of profitable and positive cash flow operations to meet the Group's future working capital and financial requirements. The financial statements do not include any adjustment that may be necessary should the implementation of such measures be unsuccessful. The auditors consider that appropriate disclosures have been made in the financial statements concerning this situation, but the auditors consider that this fundamental uncertainty relating to whether the going concern basis is appropriate is so extreme that the auditors have disclaimed their opinion. Disclaimer of opinion Because of the significance of the fundamental uncertainty relating to the going concern basis, the auditors are unable to form an opinion as to whether the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 31 March 2004 and of the loss and cash flows of the Group for the year then ended and as to whether the financial statements have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance. 3. LOSS FROM OPERATING ACTIVITIES The Group's loss from operating activities is arrived at after charging/(crediting): 2004 2003 HK$'000 HK$'000 Cost of inventories sold 14,444 22,657 Depreciation 10,604 14,796 Provision for bad and doubtful debts: Trade receivable - 1,556 Other receivables - 307 ------------------ - 1,863 ------------------ Minimum lease payments under operating leases in respect of land and buildings 411 407 Auditors' remuneration 800 750 Staff costs (excluding directors' remuneration): Wages and salaries 7,841 10,841 Retirement benefits scheme contributions 171 153 ------------------ 8,012 10,994 ------------------ Exchange gains, net (28) (124) Revaluation deficit/(surplus) on land and buildings 697 (82) Provision for inventories - 528 Loss on disposal of fixed assets 81 - ================== 4. EARNINGS/(LOSS) PER SHARE The calculation of basic loss per share is based on the net loss attributable to shareholders for the year of HK$30,898,000 (2003: net profit of HK$37,432,000), and the weighted average of 728,666,188 (2003: 236,329,878) ordinary shares in issue during the year, as adjusted to reflect the open offer during the year. Diluted loss per share amounts for the year ended 31 March 2004 have not been disclosed as the convertible note and bonds outstanding during the year had anti-dilutive effect on the basic loss per share for the year. Diluted earnings per share amounts for the year ended 31 March 2003 have not been disclosed as the share options, convertible bonds and convertible note outstanding during that year had no dilutive effect on the basic earnings per share for that year.