Sands China Ltd. — Earnings Release 2003

Apr 15, 2004

Listed Company Information

Listed Company Information
PACIFIC PLYWOOD<00767> - Results Announcement Pacific Plywood Holdings Limited announced on 15/04/2004: (stock code: 00767 ) Year end date: 31/12/2003 Currency: USD Auditors' Report: Modified (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 : 136,589 121,449 Profit/(Loss) from Operations : (3,868) 132 Finance cost : (3,965) (4,715) 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 : (8,156) (3,870) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0015) (0.0007) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (8,156) (3,870) 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. COMPARATIVE FIGURES Certain of the 2002 comparative figures have been restated to conform to current year presentation as a result of the retrospective adoption of Statement of Standard Accounting Practice Number 12 issued by the Hong Kong Society of Accountants. 2. LOSS PER SHARE The calculation of basic loss per share was based on the consolidated loss attributable to shareholders of approximately US$8,156,000 (2002 - US$3,870,000) and on the weighted average number of 5,580,897,243 shares (2002 - 5,580,897,243 shares) in issue during the year. No diluted loss per share for the year ended 31st December, 2003 and 31st December, 2002 are presented as the dilutive potential ordinary shares were anti-dilutive. 3. DETAILS OF MODIFICATION TO AUDITORS' REPORT The report of the auditors on the Group's accounts 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 accounts concerning the adoption of the going concern basis on which the accounts 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 accounts have been prepared on a going concern basis, the validity of which depends upon the successful rescheduling of the repayment terms of certain long term bank loans, obtaining the ongoing support from the Group's bankers and the ability to generate sufficient cash flows from future operations to cover the Group's operating costs and to meet its financing commitments. The accounts 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 accounts and their opinion is not qualified in this respect. 4. BASIS OF PRESENTATION As at 31st December, 2003, the Group had net current liabilities of approximately US$14,178,000 (2002 - US$9,607,000) and outstanding bank loans of approximately US$78,677,000 (2002 - US$80,061,000) of which approximately US$24,067,000 (2002 - US$13,645,000) was due for repayment within the next twelve months. Subsequent to 31st December, 2003, the Group has successfully renewed short-term bank loans of approximately US$11,913,000 for a further year to 1st quarter of 2005. In addition, subsequent to year end, the Group has secured additional trade finance banking facilities amounting to approximately US$1,316,000 (2002 - US$3,420,000). In addition, the directors are currently in negotiation with one of the Group's principal bankers for a rescheduling of the repayment terms of certain long term bank loans granted to one of the Group companies amounting to approximately US$59,211,000. As at the date of approval of the accounts, the Group has obtained in-principal approval from the bank to reschedule the loans repayments of the aforementioned bank loans ("rescheduling arrangement"). Under the rescheduling arrangement, the aforementioned bank loan would become repayable by installments from 2004 to 2015. As a result, the principal of the long-term bank loans to be repaid in the next twelve from 31st December, 2003 would have been reduced from approximately US$11,418,000 to US$3,174,000. The final legal documentation and other detailed terms of the rescheduling arrangement are yet to be finalised. Save as the above, the directors of the Group are of the opinion that there will be no material changes to the terms and conditions of the reschedule loan compared to those currently in force. In the opinion of the directors, these measures, in addition to the Group's continuing efforts to minimise capital expenditures, rationalise costs and expand its markets, have improved and will continue to improve the Group's working capital and debt maturity profile and therefore the directors are satisfied that 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, assuming the legal documents relating to the rescheduling arrangement are completed as anticipated and assuming the performance of the business is in line with the directors' expectations, 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.