Planetree International Development Limited — Earnings Release 2003

Mar 26, 2004

Listed Company Information

YUGANG INT'L<00613> - Results Announcement (Summary) Yugang International Limited announced on 26/3/2004: (stock code: 00613 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Restated) (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2003 from 1/1/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 205,166 242,836 Profit/(Loss) from Operations : 107,945 (121,622) Finance cost : (5,313) (12,199) Share of Profit/(Loss) of Associates : 22,934 6,751 Share of Profit/(Loss) of Jointly Controlled Entities : 1,215 (5,325) Profit/(Loss) after Tax & MI : 107,267 (151,368) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.0127 (0.0179) -Diluted (in dollars) : 0.0119 N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 107,267 (151,368) Final Dividend : 0.2 cent NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 4/5/2004 to 6/5/2004 bdi. Payable Date : 13/5/2004 B/C Dates for Annual General Meeting : 4/5/2004 to 6/5/2004 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Basis of presentation and comparative figures The accounting policies and basis of computation used in the preparation of these consolidated accounts are consistent with those used in the annual accounts for the year ended 31 December 2002 except that the Group has adopted the Hong Kong Statement of Standard Accounting Practice No.12 (Revised) "Income Taxes" (SSAP 12), issued by The Hong Kong Society of Accountants, which is effective for accounting periods commencing on or after 1 January 2003. Under SSAP 12, deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the accounts. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. This change in accounting policy has been applied retrospectively such that the comparative amounts presented have been restated to conform to the changed policy. As a result, the previously reported net loss of the Group for the year ended 31 December 2002 has been decreased by HK$52,000 to reflect movement in the deferred tax account of the associates during the year. 2. The Group's profit/(loss) from operating activities is arrived at after crediting/(charging) the following: 2003 2002 HK$'000 HK$'000 Provision for doubtful debts, net (4,343) (71,495) Gain/(loss) on disposal of other (17,214) 951 investments Unrealized holding gains/(losses) on other investments 91,116 (58,797) Warrant subscription reserve recognized As income upon expiry of warrants 25,674 - ========== ============ 3. Earnings/(loss) per share The calculation of basic earnings/(loss) per share for the year was based on the net profit from ordinary activities attributable to shareholders for the year of HK$107,267,000 (2002: net loss of HK$151,368,000 as restated), and the weighted average of 8,453,321,700 (2002: 8,453,321,700) ordinary shares in issue during the year. The calculation of diluted earnings per share for the year ended 31 December 2003 was based on the net profit from ordinary activities attributable to shareholders for the year of HK$111,392,000 as adjusted for the interest saving on the conversion of the convertible note into ordinary shares of the Company. The weighted average number of ordinary shares used in the calculation was the sum of the number of ordinary shares in issue during the year used in the basic earnings per share calculation of 8,453,321,700, and the weighted average of 909,090,909 ordinary shares assumed to have been issued at no consideration on the deemed conversion of all convertible notes into ordinary shares of the Company during the year. The share options and warrants outstanding during the year had no dilutive effect on the basic earnings per share for the year. The diluted loss per share for the year ended 31 December 2002 had not been shown as the share options, warrants and convertible notes outstanding during that year had an anti-dilutive effect on the basic loss per share for that year.