Samsonite Group S.A. — Earnings Release 2003

Mar 23, 2004

Listed Company Information

RICHE M-MEDIA<00764> - Results Announcement Riche Multi-Media Holdings Limited announced on 23/03/2004: (stock code: 00764 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2003 from 01/01/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 206,996 89,443 Profit/(Loss) from Operations : 116,429 (25,131) Finance cost : (340) (240) 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 : 117,129 (25,285) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.2465 (0.0532) -Diluted (in dollars) : 0.2414 (0.0532) Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 117,129 (25,285) 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. ADOPTION OF HONG KONG FINANCIAL REPORTING STANDARDS In the current year, the Group has adopted, for the first time, the following Hong Kong Financial Reporting Standard ("HKFRS") issued by the Hong Kong Society of Accountants ("HKSA"). The term HKFRS is inclusive of Statements of Standard Accounting Practice ("SSAP(s)") and Interpretations approved by the HKSA: SSAP 12 (Revised): Income Taxes In the current year, the Group has adopted SSAP 12 (Revised) "Income Taxes". The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. In previous years, partial provision was made for deferred tax using the income statement liability method, i.e. a liability was recognised in respect of timing differences arising, except where those timing differences were not expected to reverse in the foreseeable future. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. The adoption of this SSAP has had no material effect on the results for the current or prior accounting years. Accordingly, no prior year adjustment has been required. 2. TURNOVER 2003 2002 HK$'000 HK$'000 Distribution of films 163,722 34,320 Sub-licensing of film rights 38,006 43,523 Sale of advertising rights 5,268 11,600 -------- -------- 206,996 89,443 ======== ======== 3. PROFIT (LOSS) FROM OPERATIONS 2003 2002 HK$'000 HK$'000 Profit (loss) from operations has been arrived at after charging: Allowance for bad and doubtful debts (included in administrative expenses) 88 1,044 Allowance for inventory obsolescence (included in cost of sales) 487 1,757 Amortisation of film rights (included in cost of sales) 57,818 34,657 Amortisation of goodwill (included in administrative expenses) 3,105 - Amortisation of other asset (included in administrative expenses) 6,644 9,520 Auditors' remuneration 700 723 Cost of inventories sold (included in cost of sales) 4,912 3,197 Depreciation of property, plant and equipment: - owned assets 1,303 2,222 - leased assets 13 16 1,316 2,238 Operating leases rental in respect of rented premises 1,300 815 Staff costs including directors' emoluments: - salaries, allowances and benefits in kind 8,310 6,373 - contributions to retirement benefits scheme 152 177 8,462 6,550 ======= ======== 4. TAXATION CREDIT 2003 2002 HK$'000 HK$'000 The taxation (charge) credit are as follows: Hong Kong Profits Tax - current year (283) - - underprovision in prior years (164) - ------- ------- (447) - Transfer from deferred taxation 1,487 1,186 ------- ------- Taxation credit attributable to the Group 1,040 1,186 ======= ======= Hong Kong Profits Tax for the year is calculated at 17.5% on the estimated assessable profit for the year. No provision for Hong Kong Profits Tax was made in prior year as the Group either had no estimated assessable profits or its estimated assessable profits were wholly absorbed by estimated tax losses brought forward. The taxation credit for the year can be reconciled to the profit (loss) per the consolidated income statement as follows: 2003 2002 HK$'000 HK$'000 Profit (loss) before taxation 116,089 (26,471) Taxation at income tax rate of 17.5% (2002: 16%)20,316 (4,235) Tax effect of income that is not taxable in determining taxable profit (23,641) (3,816) Tax effect of expenses that are not deductible in determining taxable profit 444 5,523 Underprovision in respect of prior years 164 - Tax effect of estimated tax losses for which deferred tax assets have not been recognised 1,538 1,342 Increase in opening deferred tax liabilities resulting from an increase in Hong Kong Profits Tax rate139 - --------- --------- Taxation credit for the year (1,040) (1,186) ========= ========= 5. EARNINGS (LOSS) PER SHARE The calculation of the basic and diluted earnings (loss) per share is based on the following data: 2003 2002 HK$'000 HK$'000 Earnings (loss) for the purposes of basic earnings (loss) per share - net profit (loss) for the year 117,129 (25,285) Effect of dilutive potential ordinary shares: Interest on convertible notes payable 338 - --------- --------- Earnings (loss) for the purposes of diluted earnings (loss) per share 117,467 (25,285) ========= ========= '000 '000 Weighted average number of ordinary shares for the purposes of basic earnings (loss) per share 475,200 475,200 Effect of dilutive potential ordinary shares: Share options 2,972 - Convertible notes payable 8,450 - --------- --------- Weighted average number of ordinary share for the purposes of diluted earnings (loss) per share 486,622 475,200 ========= ========= The computation of diluted earnings per share for the year did not assume the exercise of the Company's warrants as the exercise price of these warrants was higher than the average market price for shares. The computation of diluted loss per share for the year ended 31st December, 2002 did not assume the exercise of the Company's warrants, convertible notes payable and share options because the effect of exercising a warrant, a convertible note payable and an option to subscribe for an additional share in the Company would result in a decrease of net loss per share.