Persistence Gold Group Ltd — Earnings Release 2004

Apr 26, 2005

Listed Company Information

Listed Company Information
SHANGHAI MER H<01104> - Results Announcement Shanghai Merchants Holdings Limited announced on 26/04/2005: (stock code: 01104 ) Year end date: 31/12/2004 Currency: HKD Auditors' Report: Qualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2004 from 01/01/2003 to 31/12/2004 to 31/12/2003 Note ('000 ) ('000 ) Turnover : 2,305 62,198 Profit/(Loss) from Operations : (22,751) (54,817) Finance cost : (335) (118) 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 : (36,299) (54,935) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0879) (0.1405) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (36,299) (54,935) 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 for the year ended 31 December 2004 and 31 December 2003 are from continuing operations. 2. Profit/(Loss) from operations Profit/(Loss) from operations has been arrived at after crediting (charging) the following: 2004 2003 HK$'000 HK$'000 Auditors' remuneration (430) (350) Depreciation and amortisation (17) (77) Loss on disposal of property, plant and equipment (112) - 3. Profit/(Loss) after taxation and minority interests Profit/(Loss) after taxation and minority interests is presented after crediting (charging) the following: 2004 2003 HK$'000 HK$'000 Allowance for advance to an investee company (24,806) - Gain on de-consolidation of a subsidiary 11,624 - 4. Earnings per share The calculation of the basic loss per share is based on the loss for the year of HK$36,299,000 (2003: HK$54,935,000) and on 413,000,000 (2003: a weighted average number of 391,082,192) shares in issue during the year. Diluted loss per share has not been presented for the year ended 31 December 2004 as there were no potential dilutive shares outstanding during the year. Diluted loss per share had not been presented for the year ended 31 December 2003 as the share options outstanding during that year had an anti-dilutive effect on the basic loss per share. 5. Summary of auditors' qualified report The auditors' report on the Group's financial statements for the year ended 31 December 2004 contained a qualified opinion arising from limitation of audit scope. The followings are extracts from auditors' report. "Basis of opinion We planned our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement. However, the evidence available to us was limited as set out below. (i) Financial Information of Chaoyang Hua Loong Textiles and Dyeing Limited (a) As explained in note 2 to the financial statements, despite the on-going legal actions taken by the management of the Company, the management had no access to the books and records of Chaoyang Hua Loong Textiles and Dyeing Limited ("Chaoyang Hua Loong"), a company established in the People's Republic of China with its entire equity interest held by the Group, for the period from 1 April 2003 to 31 December 2003. Accordingly, the management accounts of Chaoyang Hua Loong as at 31 March 2003 were used in the preparation of the Group's consolidated financial statements for the year ended 31 December 2003. Against the above background, the present directors are unable to satisfy themselves as to whether the opening reserves of the Company and the Group as at 1 January 2004 are free from material misstatement. (b) As disclosed in note 13 to the financial statements, during the year the Group de-consolidated Chaoyang Hua Loong. The Group's interest in Chaoyang Hua Loong has been classified as an investment security and is stated in the consolidated balance sheet at 31 December 2004 at nil value. In addition, the Group made a full allowance against an amount of HK$24, 806,000 due from Chaoyang Hua Loong. In the absence of reliable current financial information relating to the assets and liabilities of Chaoyang Hua Loong, we are unable to satisfy ourselves as to whether the interest in Chaoyang Hua Loong at 31 December 2004 is free from material misstatement and also whether the full allowance against the amount due from Chaoyang Hua Loong is appropriate. (ii) Recoverability of amount due from Great Center Limited (a) Included in trade and other receivables at 31 December 2004 is an amount of approximately HK$35.1 million due from Great Center Limited (the "Great Center Debt"). We are unable to obtain financial information of Great Center Limited so as to assess whether allowance for bad and doubtful debts is required in respect of this amount. Further details of this debt are set out in notes 22(i) and 22(ii) to the financial statements. (b) The Great Center Debt was held by a wholly-owned subsidiary of the Company at 31 December 2004. Because of the matter referred to in (a) above, we are unable to satisfy ourselves as to whether any provision for impairment in value relating to the Company's interests in this subsidiary was necessary as at 31 December 2004. Any adjustment found to be necessary to the above amounts would affect the loss of the Group for the year ended 31 December 2004 and the net assets of the Company and the Group as at that date. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. We believe that our audit provides a reasonable basis for our opinion. Qualified opinion arising from limitations of audit scope Except for any adjustments that might have been found to be necessary had we been able to obtain sufficient evidence concerning the matters referred to in the basis of opinion section of this report, in our opinion the financial statements give a true and fair view of the state of affairs of the Company and of the Group as at 31 December 2004 and of the loss 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. In respect alone of the limitations on our work set out in the basis of opinion section of this report: . we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and . we are unable to determine whether proper books of account have been kept for the entire year ended 31 December 2004."