Sands China Ltd. — Earnings Release 2002

Apr 11, 2003

Listed Company Information

PACIFIC PLYWOOD<00767> - Results Announcement Pacific Plywood Holdings Limited announced on 11/4/2003: (stock code: 00767 ) Year end date: 31/12/2002 Currency: USD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2002 from 1/1/2001 to 31/12/2002 to 31/12/2001 Note ('000 ) ('000 ) Turnover : 121,449 117,740 Profit/(Loss) from Operations : 132 (64,310) Finance cost : (4,715) (6,564) 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 : (4,620) (61,014) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0008) (0.0109) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (4,620) (61,014) 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. LOSS PER SHARE The calculation of basic loss per share is based on the consolidated loss attributable to shareholders of approximately US$4,620,000 (2001 - US$61,014,000) and on 5,580,897,243 shares (2001 - 5,580,897,243 shares) in issue throughout the year. No diluted loss per share for the years ended 31st December, 2002 and 2001 are presented as the dilutive potential ordinary shares were anti-dilutive. 2. SUMMARY OF REPORT OF THE AUDITORS The report of the auditors on the Group's financial statements has been modified to include the disclosures of a fundamental uncertainty. The auditors, in forming their opinion, have considered the adequacy of the disclosures made in the financial statements concerning the adoption of the going concern basis on which the financial statements have been prepared. As explained in the "Basis of Presentation" below, the Group is currently undertaking a number of measures to relieve its current liquidity pressures and improve its results of operations. The financial statements have been prepared on a going concern basis, the validity of which depends upon obtaining the ongoing support from the group's bankers and the ability of generating positive cash flows from operations. The financial statements do not include any adjustments that would result from the failure of such measures. Details of the circumstances relating to this fundamental uncertainty are described in the "Basis of Presentation" below. The auditors consider that appropriate disclosures have been made in the financial statements and their opinion is not qualified in this respect. 3. BASIS OF PRESENTATION As at 31st December, 2002, the Group had a net current liabilities of approximately US$9,607,000 (2001 - US$16,531,000) and outstanding bank loans of approximately US$80,061,000 (2001 - US$78,831,000) of which approximately US$13,645,000 (2001 - US$17,606,000) would be due for repayment within the next twelve months. Subsequent to 31st December, 2002, the Group has successfully renewed approximately US$9,432,000 out of the US$13,645,000 outstanding bank loans due for repayment within the next twelve months as at 31st December, 2002. In addition, the directors have successfully secured various additional trade finance banking facilities in aggregate amounting to approximately US$3,420,000. In order to further improve the Group's financial position, immediate liquidity, cash flows and operations, the directors have adopted various measures to reduce the Group's cash outflows by minimising 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 therefore the directors are satisfied the Group will be able to meet in full its financial obligations as they fall due for the twelve months from the balance sheet date. Accordingly, the directors are satisfied that it is appropriate to prepare the accounts on a going concern basis. The accounts do not include any adjustments relating to the carrying amount and reclassification of assets and liabilities that might be necessary should the Group be unable to continue as a going concern.