PegBio Co., Ltd. — Interim / Quarterly Report 2003

Dec 20, 2002

Listed Company Information

HUNG FUNG GROUP<01141> - Results Announcement Hung Fung Group Holdings Limited announced on 20/12/2002: (stock code: 01141 ) Year end date: 31/3/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 30/9/2002 to 30/9/2001 Note ('000 ) ('000 ) Turnover : 22,947 29,008 Profit/(Loss) from Operations : 63,593 (18,419) Finance cost : (2,841) (6,660) 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 : 60,752 (25,079) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.0075 (0.0095) -Diluted (in dollars) : 0.0066 N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 60,752 (25,079) Interim Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Interim 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. PROFIT/(LOSS) FROM OPERATING ACTIVITIES The Group's profit/(loss) from operating activities for the period is arrived at after charging/(crediting): Six months ended 30 September 2002 2001 (Unaudited) (Unaudited) HK$'000 HK$'000 Depreciation 7,486 7,538 Provision for bad and doubtful debts - 255 Provision for potential claim - 2,019 Staff costs 6,554 7,048 Waiver of debts due to bankers and creditors (note 3) (77,051) - ======== ====== 3. WAIVER OF DEBTS DUE TO BANKERS AND CREDITORS As further explained in note 3(a) of the " Basis of Presentation" to the Company's latest audited financial statements for the year ended 31 March 2002, pursuant to various compromise agreements entered into between the Group and (i) the bankers of the Group in Hong Kong (the "Bank Group"); (ii) a Mainland PRC entity and (iii) a number of creditors of the Group, debts aggregated to approximately HK$81,567,000 (before deducting the related restructuring expenses of approximately HK$4,516,000) were waived by the above-mentioned creditors, resulting in net income from the waiver of debts due to bankers and creditors amounting to approximately HK$77,051,000. 4. TAX Hong Kong profits tax has not been provided because there were no assessable profits arising in Hong Kong during the period. Taxes on profit assessable elsewhere have been calculated at the rates of tax prevailing in the countries in which the Group operates, based on existing legislation, interpretations and practices in respect thereof. No taxes on profits assessable elsewhere have arisen. No provision for deferred tax has been made as the Group did not have any significant unprovided deferred tax liabilities in respect of the period (2001: Nil). 5. DIVIDENDS The Board does not recommend to pay any interim dividend in respect of the six months ended 30 September 2002 (2001: Nil). 6. EARNINGS/(LOSS) PER SHARE The calculation of basic profit/(loss) per share is based on the unaudited consolidated net profit from ordinary activities attributable to shareholders for the six months ended 30 September 2002 of HK$60,752,000 (2001: net loss of HK$25,079,000) and the weighted average of 8,145,675,656 (2001: 2,627,240,803) ordinary shares of the Company in issue during the period. The weighted average number of ordinary shares of the Company in issue during these two periods had been adjusted for the offer shares of 4,025,905,140 issued on 3 June 2002, on the basis of three offer shares for every two shares held by the shareholders (the "Open Offer"). The Open Offer became unconditional on 29 May 2002. The calculation of diluted earnings per share is based on the adjusted net profit from ordinary activities attributable to shareholders for the period of HK$60,958,000 (after adjusting the interest expenses of the convertible notes saved for the period if all convertible notes were converted to the Company's shares at their respective issuing dates, which amounts to approximately HK$206,000,) and weighted average number of 9,185,460,601 ordinary shares in issue. The weighted average number of ordinary shares used in the calculation of diluted earning per share is the weighted average number of ordinary shares in issue during the period, as used in the basic earnings per share calculation; and the weighted average of 1,039,784,945 ordinary shares assumed to have been issued at HK$0.01 on the conversion of all convertible notes outstanding during the period. A diluted loss per share amount for the period ended 30 September 2001 has not been disclosed as the potential ordinary shares outstanding during that period had an anti-dilutive effect on the basic loss per share for that period. 7. ACCOUNTING POLICIES AND BASIS OF PRESENTATION The unaudited condensed consolidated interim financial statements are prepared in accordance with the Hong Kong Statement of Standard Accounting Practice ("SSAP") No. 25 "Interim Financial Reporting" issued by the Hong Kong Society of Accountants and the disclosure requirements set out in Appendix 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). The accounting policies and basis of presentation used in the preparation of these interim financial statements are the same as those used in the latest annual audited financial statements for the year ended 31 March 2002, except that the following new and revised SSAPs have been adopted for the first time in the preparation of the current period's condensed consolidated interim financial statements. . SSAP 1 (Revised): "Presentation of Financial Statements" . SSAP 11 (Revised): "Foreign Currency Translation" . SSAP 15 (Revised): "Cash Flow Statements" . SSAP 25 (Revised): "Interim Financial Reporting" . SSAP 33: "Discontinuing Operations" . SSAP 34: "Employee Benefits" The adoption of these new and revised SSAP by the Group do not have any material impact on these financial statements except that certain comparative figures and disclosure have been adjusted to conform with current period's presentation.