PegBio Co., Ltd. — Earnings Release 2003

Jul 24, 2003

Listed Company Information

XIN CORP<01141> - Results Announcement Xin Corporation Limited announced on 24/07/2003: (stock code: 01141 ) Year end date: 31/03/2003 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 31/3/2003 to 31/3/2002 Note ('000 ) ('000 ) Turnover : 38,092 47,408 Profit/(Loss) from Operations : (33,383) (43,449) Finance cost : (5,380) (15,835) 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 : 37,432 (59,284) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.2 (1.15) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 37,432 (59,284) 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 Auditor's Report In forming their opinion, the auditors have considered the adequacy of the disclosures made in the financial statements concerning the basis of the preparation adopted by the directors. As explained in the financial statements, the financial statements of the Group have been prepared on a going concern basis, notwithstanding that the Group had net current liabilities and a deficiency in assets of HK$91,336,000 and HK$11,014,000, respectively, as at 31 March 2003. The Group also incurred a loss from operating activities of HK$33,383,000 during the year and reported a net cash outflow from operating activities of HK$33,239,000. Subsequent to the balance sheet date, the directors have initiated a number of measures to improve the Group's financial/liquidity position and relieve the Group's liquidity pressure for the immediate foreseeable future. In particular, the Group successfully negotiated to effect an open offer (the "Open Offer") of shares of the Company with expected proceeds, before related expenses, of HK$51,726,000. Vision Century Group Limited, the immediate holding company of the Company, has irrevocably undertaken to subscribe for the shares offered under the Open Offer and is entitled to apply for on an assured basis. The remaining offer shares are fully underwritten by an independent third party pursuant to an underwriting agreement. In addition, Huang Worldwide Holding Limited ("Huang Worldwide"), an intermediate holding company of the Company, has undertaken to provide continuing financial support to the Group to enable it to continue its day-to-day operations as a viable going concern notwithstanding any present or future financial difficulties experienced by the Group (the "Financial Support"). The financial statements have been prepared on a going concern basis, the validity of which depends upon the successful outcome of the Open Offer, the ability of Huang Worldwide to provide the Financial Support and other measures currently undertaken by the Group as detailed the financial statements. The financial statements do not include any adjustments that may be necessary should the implementation of such measures become unsuccessful. The auditors consider that appropriate estimates and disclosures regarding the above fundamental uncertainty have been made and their opinion is not qualified in this respect. In the auditors' opinion, the financial statements give a true and fair view of the state of affairs of the Company and of the Group at 31 March 2003 and of the profit and cash flows of the Group for the year then ended and have been properly prepared in accordance with the disclosure requirements of the Hong Kong Companies Ordinance. However, without qualifying their opinion, the auditors draw attention to the fact that because their opinion dated 19 July 2002 on the loss and cash flows of the Group for the year ended 31 March 2002 was qualified for the scope limitation reasons summarised in the basis of opinion section therein, any adjustments in respect of the scope limitations found to be necessary to the opening net liabilities of the Company and of the Group as at 1 April 2001 would have had a consequential effect on the results of the Company and of the Group for the year ended 31 March 2002. Accordingly, the comparative of the consolidated profit and loss account and cash flow statement shown in these financial statements may not be comparable with the amounts for the current year. 3. Loss from operating activities The Group's loss from operating activities is arrived at after charging/(crediting): 2003 2002 HK$'000 HK$'000 Cost of inventories sold 22,657 30,008 Depreciation 14,796 14,750 Provision for bad and doubtful debts: Accounts receivable 1,556 690 Other receivables 307 - ------------ ------------ 1,863 690 ------------ ------------ Minimum lease payments under operating leases in respect of land and buildings 407 971 Auditors' remuneration 750 750 Staff costs (excluding directors' remuneration): Salaries and wages 10,841 12,028 Retirement benefits scheme contributions 153 137 ------------ ------------ 10,994 12,165 ------------ ------------ Revaluation deficit/(surplus) on land and buildings (82) 2,638 Provision for inventories 528 - Loss on disposal of fixed assets - 39 ======= ======= Xin Corporation Limited Announcement of Results For Year Ended 31 March 2003 4. (1) Earning/(Loss) per share The calculation of basis earning per share is based on the profit attributable to shareholders for the year of HK$37,432,000 (2002: loss of HK$59,284,000) and the weighted average of 189,063,902 (2002: 51,551,624 restated to reflect the share consolidation during the year) ordinary shares in issue during the year. Diluted earnings/(loss) per share amounts for the years ended 31 March 2003 and 2002 have not been disclosed, as the exercise prices of the outstanding share options of the Company was greater than the average market price of the Company's shares during that years, and therefore the share options had no dilutive effect on the basis earnings/(loss) per share for the years ended 31 March 2003 and 2002. (2) Change or adjustment of the last corresponding results Pursuant to special resolution passed at a special general meeting of the Company held on 30 December 2002, the consolidation and reduction of the par value of the shares of the Company, as a consequence, the then share capital of the Company, were consolidated on the basis of fifty old shares- of HK$0.01 each into one new share of par value of HK$0.50.