Samsonite Group S.A. — Earnings Release 2005

Apr 24, 2006

Listed Company Information

Listed Company Information
RICHE M-MEDIA<00764> - Results Announcement Riche Multi-Media Holdings Limited announced on 24/04/2006: (stock code: 00764 ) Year end date: 31/12/2005 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 Note ('000 ) ('000 ) Turnover 2 : 38,339 58,382 Profit/(Loss) from Operations 3 : (29,324) (267,730) 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 : (29,664) (268,347) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0061) (0.0565) -Diluted (in dollars) : (0.0061) (0.0565) Extraordinary (ETD) Gain/(Loss) 6 : N/A N/A Profit/(Loss) after ETD Items : (29,664) (268,347) 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. THE ADOPTION OF NEW/REVISED HKFRSS In 2005, the Group adopted the new/revised standards and interpretations of HKFRSs below, which are relevant to its operations. The 2004 comparative figures have been restated as required, in accordance with the relevant requirements. HKAS 1 Presentation of Financial Statements HKAS 2 Inventories HKAS 7 Cash Flow Statements HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors HKAS 10 Events after the Balance Sheet Date HKAS 16 Property, Plant and Equipment HKAS 17 Leases HKAS 21 The Effects of changes in Foreign Exchange Rates HKAS 23 Borrowing Costs HKAS 24 Related Party Disclosures HKAS 27 Consolidated and Separate Financial Statements HKAS 32 Financial Instruments: Disclosures and Presentation HKAS 33 Earnings per Share HKAS 36 Impairment of Assets HKAS 38 Intangible Assets HKAS 39 Financial Instruments: Recognition and Measurement HKAS-Int 21 Income Taxes - Recovery of Revalued Non Depreciated Assets HKFRS 2 Share-based payment HKFRS 3 Business Combinations The adoption of new/revised HKASs 1, 2, 7, 8, 10, 16, 21, 23, 24, 27 and 33 did not result in substantial changes to the Group's accounting policies. 2. TURNOVER 2005 2004 HK$'000 HK$'000 Distribution of films 9,382 27,285 Sub-licensing of film rights 10,534 16,319 Sales of financial assets at fair value through profit and loss 18,423 14,778 ----------------------------- 38,339 58,382 ============================== 3. LOSS FROM OPERATIONS 2005 2004 HK$'000 HK$'000 (restated) Loss from operations has been arrived after charging: Allowance for film right deposits - 1,000 Allowance for inventory obsolescence - 917 Amortisation of prepaid operating lease payment 10 20 Amortisation of film rights 10,332 17,894 Amortisation of goodwill - 3,953 Amortisation of other asset - 6,644 Auditors' remuneration 500 720 Cost of inventories sold 33 1,904 Depreciation of property, plant and equipment: - owned assets 1,098 1,206 - leased assets 10 10 -------------------------- 1,108 1,216 Impairment loss on provision of bad and doubtful debts 2,474 1,648 Impairment loss recognised in respect of prepayments 1,188 - Operating leases rental in respect of rented premises 900 1,616 Staff costs including directors' emoluments - Salaries 6,813 10,008 - Contribution to retirement benefits scheme 143 212 6,956 10,220 Unrealised loss on financial assets at fair value through profit and loss 3,928 852 4. TAXATION 2005 2004 HK$'000 HK$'000 (restated) The taxation charge is as follows: Hong Kong Profits Tax: - current year - (284) - over provision in prior years - 7 ---------------------------- Taxation charge attributable to the Company and its subsidiaries - (277) ========================== No provision for Hong Kong Profits Tax has been made for the year ended 31 December 2005 as the Company and its subsidiaries either have no estimated assessable profits or their estimated assessable profits are wholly absorbed by estimated tax losses brought forward. Hong Kong Profits Tax is calculated at 17.5% on the estimated assessable profit for the year ended 31 December 2004. The taxation for the year can be reconciled to the loss before taxation per the consolidated income statement as follows: 2005 2004 HK$'000 % HK$'000 % Loss before taxation (29,664) (268,070) Taxation at income tax rate of 17.5% 5,191 17.5 46,912 17.5 Tax effect of income that is not taxable in determining taxable profit 8,554 28.8 606 0.2 Tax effect of expenses that are not deductible in determining tax profit (11,308) (38.1) (45,632) (17.0) Underprovision in respect of prior years - - 7 - Tax effect of estimated tax losses for which deferred tax assets have not been recognised (2,437) (8.2) (2,170) (0.8) --------------------------------------------------- Taxation charge for the year - - (277) (0.1) ================================================= In April 2002, April 2003, March 2004, and January 2005, the Inland Revenue Department (the "IRD") of Hong Kong issued estimated assessments to Ocean Shores Licensing Limited ("OSLL") in respect of their potential tax liabilities for the years of assessments from 1995/1996 to 2000/2001 in the amount of HK$22,971,000. OSLL has formally objected to the estimated assessments. The directors of the Company consider appropriate tax provision has already been made in the financial statements. At the request of the IRD, OSLL has already paid deposits totaling approximately HK$4,146,000 by way of purchase of tax reserve certificates and payment of instalments in cash. There are possible obligations in penalty and interest arising in respect of the potential tax liabilities in the event that the objection is settled. 5. LOSS PER SHARE The calculation of the basic and diluted loss per share is based on the following data: 2005 2004 HK$'000 HK$'000 (restated) Loss for the purposes of basic loss per share - net loss for the year (29,664) (268,347) Effect of dilutive potential ordinary shares: Interest on convertible notes payable - - Loss for the purposes of diluted loss per share (29,664) (268,347) '000 '000 Number of shares Weighted average number of ordinary shares for the purpose of basic loss per share 4,865,190 4,752,000 Effect of dilutive potential ordinary shares: Warrants - - Convertible notes payable - - Share options - - ----------------------------------- Weighted averaged number of ordinary share for the purposes of diluted loss per share 4,865,190 4,752,000 ================================= The computation of diluted loss per share for the year ended 31 December 2005 did not assume the exercise of the Company's share options because the effect of exercising 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 loss per share for the year ended 31 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. 6. ADJUSTMENT OF THE LAST CORRESPONDING RESULTS The adoption of revised HKAS 17 has resulted in a change in the accounting policy relating to the reclassification of land use rights from property, plant and equipment to operating leases. The up-front prepayments made for the land use rights are expensed in the income statement on a straight- line basis over the period of the lease or when there is impairment, the impairment is expensed in the income statement. In prior years, the leasehold land was accounted for at fair value or cost less accumulated depreciation and accumulated impairment.