PegBio Co., Ltd. — Audit Report / Information 2005

Jul 28, 2005

Listed Company Information

Listed Company Information
XIN CORP<01141> - Results Announcement Xin Corporation Limited announced on 28/07/2005: (stock code: 01141 ) Year end date: 31/03/2005 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2004 from 01/04/2003 to 31/03/2005 to 31/03/2004 Note ('000 ) ('000 ) Turnover : 180,892 22,531 Profit/(Loss) from Operations : (2,507) (27,308) Finance cost : (4,049) (4,951) 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 : (11,079) (30,898) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.19) (0.83) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (11,079) (30,898) 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: I. TURNOVER Turnover represents the net invoiced value of goods sold, after allowances for returns and trade discounts. II. EXTRACT OF AUDITORS' REPORT Fundamental uncertainty relating to the going concern basis ----------------------------------------------------------- In forming our opinion, we 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 the ongoing support by 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. We consider that appropriate disclosures have been made in the financial statements concerning this situation, but we consider that this fundamental uncertainty relating to whether the going concern basis is appropriate is so extreme that we have disclaimed our opinion. Fundamental uncertainty as to the inspection carried out by an authority ------------------------------------------------------------------------ of Mainland China ----------------- In forming our opinion, we have considered the adequacy of the disclosures made in note 32 to the financial statements concerning the inspection at the factory premises of the Group by an authority in Mainland China (the "Authority"). As the inspection by the Authority is still ongoing, it is not possible to ascertain with any degree of reasonable certainty the consequential actions that may be taken by the Authority for any possible breaches of laws and regulations of Mainland China and the existence or otherwise of any penalties and claims as a result of any possible irregularities. As of the date of this report, no provision has been made in the financial statements for such contingencies. We consider that appropriate disclosures and estimates have been made and our audit opinion is therefore not qualified in this respect. Disclaimer of opinion --------------------- Because of the significance of the fundamental uncertainty relating to the going concern basis, we 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 2005 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. III. LOSS FROM OPERATING ACTIVITIES The Group's loss from operating activities is arrived at after charging/ (crediting): 2005 2004 HK$'000 HK$'000 Cost of inventories sold 155,952 14,444 Depreciation 10,005 10,604 Provision for bad and doubtful debts 290 - Minimum lease payments under operating leases in respect of land and buildings 741 411 Auditors' remuneration 1,080 800 Staff costs (excluding directors' remuneration): Wages and salaries 8,271 7,841 Retirement benefits scheme contributions 304 171 -------------------------- 8,575 8,012 ========================== Exchange gains, net (50) (28) Revaluation deficit/(surplus) on land and buildings (1,780) 697 Provision against inventories 828 - Loss on disposal of fixed assets - 81 Write-off of fixed assets 111 - ============================= IV. LOSS PER SHARE The calculation of basic loss per share is based on the net loss attributable to shareholders for the year of HK$11,079,000 (2004: HK$30,898,000), and the weighted average of 58,849,004 (2004: 37,161,976, restated to reflect the open offer during the year ended 31 March 2005 and share consolidation after 31 March 2005) ordinary shares in issue during the year, as adjusted to reflect the open offer during the year and the share consolidation after the balance sheet date. Diluted loss per share amounts for the years ended 31 March 2005 and 2004 have not been disclosed as the convertible note and bonds outstanding during the year had an anti-dilutive effect on the basic loss per share for these years.