Planetree International Development Limited — Earnings Release 1999

May 9, 2000

Listed Company Information

YUGANG INT'L<0613> - Results Announcement Yugang International Limited announced on 9/5/2000: (stock codes: Ord: 613 & War: 1198) Year end date: 31/12/1999 Currency: HK$ (Audited) (Audited) Last Current Corresponding Period Period from 1/1/1999 from 1/1/1998 to 31/12/1999 to 31/12/1998 ('000) ('000) Turnover - Continuing : 507,947 896,187 - Discontinued : - - Operating Profit/(Loss) - Continuing : 83,457 (183,240) - Discontinued : - - Total Operating Profit/(Loss) : 83,457 (183,240) Share of Profit/(Loss) of Associated Companies : 1,236 461 Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 83,577 (187,681) % Change over Last Period : N/A EPS/(LPS)-Basic : 3.3 cents (7.4 cents) -Diluted : 3.2 cents N/A Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 83,577 (187,681) Final Dividend per Share : 0.5 cent Nil (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : 7/6/2000 to 12/6/2000 bdi. Payable Date : 20/6/2000 B/C Dates for Annual General Meeting : 7/6/2000 to 12/6/2000 bdi. Other Distribution for Current Period : Bonus issue of shares on the basis of one Bonus share for every existing share held. B/C Dates for Other Distribution : 7/6/2000 to 12/6/2000 bdi. Remarks: (1) Other operating income/(expenses), net 1999 1998 HK$'000 HK$'000 (Restated) Provision for an amount due from an associate (2,500) - Write-back of provision/ (provision) for doubtful debts 10,902 (124,217) Unrealised holding gains/(losses) on other investments 44,372 (48,520) Deficit arising from revaluation of investment properties - (9, 000) Gain/(loss) on disposal of listed investments 4,248 (20,424) Others (1,494) (7,347) -------------------------- 55,528 (209,508) ========================== SSAP 2 prescribes the classification, disclosure and accounting treatment of certain items in the profit and loss account, and specifies the accounting treatment for changes in accounting estimates, changes in accounting policies and the correction of fundamental errors. The principal impact of the SSAP on the preparation of these financial statements is that "exceptional items", previously disclosed on the face of the profit and loss account, are now disclosed by way of note as shown above and are no longer specifically referred to as "exceptional". (2) Earnings per share The calculation of basic earnings/(loss) per share is based on the net profit atributable to shareholders for the year of HK$83,577,000 (1998: net loss of HK$187,681,000 as adjusted) and the weighted average of 2,546,820,160 shares in issue throughout the two years. The adjustment to the comparative basic loss per share arising from the adoption of SSAP 24 shown in note 3 below is as follows : HK cents As previously reported (9.4) Adjustment arising from the adoption of SSAP 24 2.0 ----- As restated (7.4) ===== The calculation of diluted earnings per share is based on the net profit attributable to shareholders for the year of HK$83,577,000. The weighted average number of ordinary shares used in the calculation is the sum of the number of ordinary shares in issue during the year used in basic earnings per share calculation of 2,546,820,160; the weighted average of 16,889,880 and 24,234,561 ordinary shares assumed to have been issued at no consideration on the deemed exercise of all warrants and all share options, respectively, outstanding during the year. The diluted loss per share for 1998 has not been calculated as there were no dilutive potential ordinary shares in existence during the year. (3) Prior year adjustment In prior years, the Group's investments in listed securities held on a long term basis were stated at cost less any provisions for permanent diminutions in values thereof deemed necessary by the directors. All these investments are now classified as other investments under SSAP 24, which are stated at their fair values on the basis of their quoted market prices at the balance sheet date on an individual investment basis. The gains or losses arising from changes in the fair value are credited or charged to the profit and loss account for the period in which they arise. The adoption of SSAP 24 has resulted in a prior year adjustment, which has the effect of decreasing the retained profits as at 1 January 1998 by HK$52,091,000 and a decrease in the net loss from ordinary activities attributable to shareholders for the year ended 31 December 1998 of HK$52,028,000. Adjustment As arising from previously the adoption reported of SSAP 24 As restated HK$'000 HK$'000 HK$'000 ------------------------------------------- Operating loss before (235,268) 52,028 (183,240) taxation and before share of results of associated companies Loss after taxation (239,709) 52,028 (187,681) & MI for the year ended 31/12/1998 (4) Subscription price of existing warrants The existing warrants were first issued at an initial subscription price of HK$0.23 per share (subject to adjustment) on 16th September, 1999. The subscription price has been adjusted to currently HK$0.21 per share after the placement of shares which has taken place in January & February 2000. The subscription price of the existing warrants is expected to be further adjusted to HK$0.105 per share (subject to adjustment) as a result of the proposed bonus issue of shares on the basis of one Bonus Share for every existing share held by the shareholders whose names appear on the register of members of the Company on 12th June, 2000 subject to both the approval of the shareholders at the forthcoming Annual General Meeting to be held on 12th June, 2000; and the Listing Committee of the Stock Exchange granting listing of and permission to deal in the new shares to be issued pursuant to the Bonus Share Issue.