Sands China Ltd. — Earnings Release 2000

Apr 18, 2001

Listed Company Information

PACIFIC PLYWOOD<0767> - Results Announcement Pacific Plywood Holdings Limited announced on 18/4/2001: (stock code: 767) The auditors' report on the financial statements which contain the following result is modified by the Company's auditors. For more details, please refer to the press announcement to be issued by the Company on 19/4/2001. Year end date: 31/12/2000 Currency: US$ (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2000 from 1/1/1999 to 31/12/2000 to 31/12/1999 ('000) ('000) Turnover : 130,012 139,842 Profit/(Loss) from Operations : (1,737) 11,019 Finance cost : (8,248) (7,692) Share of Profit/(Loss) of Associates : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (10,550) 3,435 % Change over Last Period : N/A EPS/(LPS)-Basic : (US0.19 cent) US0.07 cent -Diluted : N/A US0.07 cent Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (10,550) 3,435 Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for Annual General Meeting : 11/6/2001 to 18/6/2001 bdi. Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: 1. (LOSS) EARNINGS PER SHARE The calculation of basic (loss) earnings per share was based on the consolidated loss attributable to shareholders of approximately US$10,550,000 (1999 - profit of US$3,435,000) and on the weighted average number of 5,580,897,243 shares (1999 - 4,961,341,573 shares) in issue during the year. No diluted loss per share for the year ended 31st December, 2000 was presented as the dilutive potential ordinary shares were anti-dilutive. The calculation of diluted earnings per share for the year ended 31st December, 1999 was based on the consolidated profit attributable to shareholders of approximately US$3,435,000 and the weighted average number of 4,964,130,867 shares. Reconciliation of the weighted average number of shares used in calculating basic and diluted earnings per share for the year ended 31st December, 1999: Weighted average number of shares used in calculating basic earnings per share 4,961,341,573 Adjustment for potential dilutive effect in respect of share options 2,789,294 -------------- Weighted average number of shares in calculating diluted earnings per share 4,964,130,867 ============= 2. BASIS OF PRESENTATION As at 31st December, 2000, the Group had a working capital deficiency of approximately US$5,848,000 (1999 - US$17,504,000) and outstanding bank borrowings of approximately US$78,600,000 (1999 - US$84,075,000). Having regard to this background, in order to improve its financial position, immediate liquidity, cash flows and operations, the Directors have adopted various measures including the following: a. The Directors have obtained agreement in principle to reschedule the loan repayments of the bank loans within the Group companies. Under the rescheduling arrangements, the bank loans will be repayable commencing on 30th June, 2002. The final legal documentation and other details terms of the bank loan restructuring, primarily relating to collateral, are still to be finalized. b. The Group has also started to reduce its cash outflows by minimizing its capital expenditures and adopting other cost-cutting measures. In the opinion of the Directors, the Group's cash flow position and results of operations will be improved in the coming year because of the effects of the above measures and the Group will be able to adequately finance its operations. Accordingly, the Directors are satisfied that it is appropriate to prepare the financial statements on a going concern basis. 3. COMPARATIVE FIGURES Certain of the 1999 comparative figures have been reclassified to conform to current year presentation as a result of adopting the provision of Statement of Standard Accounting Practice Number 1 "Presentation of Financial Statements" issued by the Hong Kong Society of Accountants.