Samsonite Group S.A. — Earnings Release 2004

Apr 25, 2005

Listed Company Information

Listed Company Information
RICHE M-MEDIA<00764> - Results Announcement Riche Multi-Media Holdings Limited announced on 25/04/2005: (stock code: 00764 ) Year end date: 31/12/2004 Currency: HKD Auditors' Report: Unqualified (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 : 58,382 206,996 Profit/(Loss) from Operations 3 : (267,773) 116,429 Finance cost : (340) (340) 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 : (268,390) 117,129 % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0565) 0.0247 -Diluted (in dollars) : (0.0565) 0.0241 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (268,390) 117,129 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. POTENTIAL IMPACT ARISING FROM THE RECENTLY ISSUED ACCOUNTING STANDARDS In 2004, the Hong Kong Institute of Certified Public Accountants, (the " HKICPA") issued a number of new or revised Hong Kong Accounting Standards ("HKASs") and Hong Kong Financial Reporting Standards ("HKFRSs") (herein collectively referred to as "New HKFRSs") which are effective for accounting periods beginning on or after 1st January, 2005. The Group has not early adopted these New HKFRSs in the financial statements for the year ended 31st December, 2004. The Group has commenced considering the potential impact of these New HKFRSs. Based on management's preliminary assessment, the adoption of HKFRS 3 "Business Combinations" and HKAS 36 "Impairment of Assets" in the annual period beginning on 1st January, 2005 will result in cessation of amortisation of goodwill to the income statement. Pursuant to HKFRS 3 " Business Combinations" and HKAS 36 "Impairment of Assets", goodwill is to be recognised as an asset and reviewed for impairment at least annually and any impairment is recognised immediately in the income statement while the Group's current policy is to amortise goodwill on a straight-line basis over its useful economic life. During the year ended 31st December, 2004, the amortisation of goodwill charged to the income statement amounted to approximately HK$3,953,000. The Group is still considering the potential impact of other New HKFRSs but is not yet in a position to determine whether other New HKFRSs would have a significant impact on how its results of operations and financial position are prepared and presented. Other New HKFRSs may result in changes in the future as to how the results and financial position are prepared and presented. 2. TURNOVER 2004 2003 HK$'000 HK$'000 Distribution of films 27,285 163,722 Sub-licensing of film rights 16,319 38,006 Proceeds from sale of securities 14,778 - Sale of advertising rights - 5,268 _______ ______ 58,382 206,996 ______ _______ 3. LOSS) PROFIT FROM OPERATIONS 2004 2003 HK$'000 HK$'000 (Loss) profit from operations has been arrived at after charging (crediting): Allowance for bad and doubtful debts (included in administrative expenses) 1,648 88 Allowance for film right deposits (included in administrative expenses) 1,000 - Allowance for inventory obsolescence (included in cost of sales) 917 487 Amortisation of film rights (included in cost of sales) 17,894 57,818 Amortisation of goodwill (included in administrative expenses) 3,953 3,105 Amortisation of other asset (included in administrative expenses) 6,644 6,644 Auditors' remuneration 720 700 Cost of inventories sold (included in cost of sales) 1,904 4,912 Depreciation of property, plant and equipment: - owned assets 1,269 1,303 - leased assets 10 13 1,279 1,316 Operating lease rental in respect of rented premises 1,616 1,300 Staff costs including directors' emoluments: - salaries, allowances and benefits in kind 10,008 8,310 - contributions to retirement benefits scheme 212 152 10,220 8,462 Unrealised loss on investments in securities (included 852 - in cost of sales) (Gain) loss on disposal of property, plant and equipment (14) 4 ______ ______ ______ ______ 4. TAXATION 2004 2003 HK$'000 HK$'000 The taxation (charge) credit are as follows: Hong Kong Profits Tax - current year (284) (283) - over(under)provision in prior years 7 (164) _____ _____ (277) (447) Transfer from deferred taxation - 1,487 _____ _____ Taxation credit attributable to the Company and its subsidiaries (277) 1,040 _____ _____ Hong Kong Profits Tax is calculated at 17.5% (2003: 17.5%) on the estimated assessable profit for the year. The taxation (charge) credit for the year can be reconciled to the (loss) profit per the consolidated income statement as follows: 2004 2003 HK$'000 HK$'000 (Loss) profit before taxation (268,113) 116,089 _______ _________ Taxation at income tax rate of 17.5% 46,920 (20,316) Tax effect of income that is not taxable in determining taxable profit 606 23,641 Tax effect of expenses that are not deductible in determining taxable profit (45,640) (444) (Over) underprovision in respect of prior years 7 (164) Tax effect of estimated tax losses for which deferred tax assets have not been recognised (2,170) (1,538) Increase in opening deferred tax liabilities resulting from an increase in Hong Kong Profits Tax rate - (139) _______ _______ Taxation (charge) credit for the year (277) 1,040 _______ _______ 5. (LOSS) EARNINGS PER SHARE The calculation of the basic and diluted (loss) earnings per share is based on the following data: 2004 2003 HK$'000 HK$'000 (Loss) earnings for the purposes of basic (loss) earnings per share - net (loss) profit for the year (268,390) 117,129 Effect of dilutive potential ordinary shares: Interest on convertible notes payable - 338 _______ __________ (Loss) earnings for the purposes of diluted (loss) earnings per share (268,390) 117,467 _______ __________ '000 '000 Weighted average number of ordinary shares for the purposes of basic (loss) earnings per share 4,752,000 4,752,000 Effect of dilutive potential ordinary shares: Share options - 29,717 Convertible notes payable - 84,500 _______ __________ Weighted average number of ordinary share for the purposes of diluted (loss) earnings per share 4,752,000 4,866,217 _______ __________ Subsequent to the balance sheet date, the Company's issued and unissued shares of HK$0.10 each was subdivided into 10 new shares of HK$0.01 each. The share subdivision took effect on 17th January, 2005. The weighted average number of ordinary shares for both years for the purposes of basic and diluted (loss) earnings per share have been adjusted accordingly. The computation of diluted loss per share for the year ended 31st December, 2004 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. The computation of diluted earning per share for the year ended 31st December, 2003 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.