PegBio Co., Ltd. — Earnings Release 2006

Jul 25, 2006

Listed Company Information

Listed Company Information
XIN CORP<01141> - Results Announcement Xin Corporation Limited announced on 25/07/2006: (stock code: 01141 ) Year end date: 31/03/2006 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2005 from 01/04/2004 to 31/03/2006 to 31/03/2005 Note ('000 ) ('000 ) Turnover 3 : 166,345 180,892 Profit/(Loss) from Operations 4 : 2,513 2,738 Finance cost 5 : (4,649) (4,786) 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 : (15,994) (12,047) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) 6 : (0.193) (0.146) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (15,994) (12,047) 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. Accounting Policies In current year, the Group has adopted a number of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRSs") that are effective for accounting periods commencing on or after 1 January 2005. The adoption of the new HKFRSs has resulted in changes in accounting policies and the presentation of various income statement and balance sheet items. Last year's comparative figures are restated to reflect the adoption of new HKFRSs during the year. Details of the changes can be found in the Company's results announcement and annual report. 2. Extract of Auditor's Report Fundamental uncertainty relating to the going concern basis The Group recorded net current liabilities of HK$17,364,000 and deficiency in assets of HK$2,124,000 as at 31 March 2006. 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. 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 2006 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. Revenue Revenue, which is also the Group's turnovers represents the net invoiced value of goods sold, after allowances for returns and trade discounts during the year. Continuing Discontinued Total operations operations ------------------ ------------------ -------------------- 2006 2005 2006 2005 2006 2005 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Revenue -------- Sale of goods 155,550 144,687 10,795 36,205 166,345 180,892 ======================================================================== 4. Profit/(Loss) From Operations The Group's profit/(loss) before tax is arrived at after charging / (crediting): Continuing operations Discontinued operations Total 2006 2005 2006 2005 2006 2005 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Cost of inventories sold 136,723 132,223 6,726 23,729 143,449 155,952 Depreciation of items of property, plant and equipment 1,665 2,146 2,620 6,746 4,285 8,892 Depreciation of investment properties 430 - - - 430 - Recognition of prepaid land lease payments 728 728 - - 728 728 Provision for impairment of accounts receivable - 290 - - - 290 Minimun lease payments in respect of land and buildings 450 633 155 108 605 741 Auditors' remuneration 1,180 1,080 - - 1,180 1,080 Employee benefits expense (excluding directors' remuneration): 0 - Wages and salaries 2,951 2,859 1,732 5,412 4,683 8,271 Equity-settled share option expenses 466 - - - 466 - Pension scheme contributions 124 251 21 53 145 304 ----------------------------------------------------------------------- 3,541 3,110 1,753 5,465 5,294 8,575 ----------------------------------------------------------------------- Foreign exchange differences, net 2,194 (40) (43) (168) 2,151 (208) Impairment of items of property, plant and equipment - - 3,873 111 3,873 111 Provision/(write-back of provision) against inventories (485) 485 - 343 (485) 828 Revaluation surplus on leasehold buildings - - - (1,164) - (1,164) Gross and net rental income 654 - - - 654 - ========================================================================= 5. Finance Costs 2006 2005 Continuing Discontinued Total Continuing Discontinued Total operations operations operations operations ------------------------------------- --------------------------------- HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Finance costs 4,620 29 4,649 4,786 - 4,786 6. Loss per share The calculation of basic loss per share amounts is based on the net loss for the year attributable to equity holders of the Company for the year of HK$15,994,000 (2005: HK$12,047,000 (restated)), and the weighted average of 82,704,014 (2005: 82,704,014, restated to reflect the share consolidation ordinary shares in issue during the year, as adjusted to reflect the capital reorganization during the year. Diluted loss per share amounts for the years ended 31 March 2006 and 2005 have not been disclosed as the convertible note and bonds and share options outstanding during the year had anti-dilutive effects on the basic loss per share for these years.