Sands China Ltd. — Earnings Release 2004

Apr 19, 2005

Listed Company Information

Listed Company Information
PACIFIC PLYWOOD<00767> - Results Announcement Pacific Plywood Holdings Limited announced on 19/04/2005: (stock code: 00767 ) Year end date: 31/12/2004 Currency: USD Auditors' Report: Modified (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 : 149,522 136,589 Profit/(Loss) from Operations : (4,035) (3,868) Finance cost : (3,393) (3,965) 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 : (4,499) (8,156) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) 1 : (0.0008) (0.0015) -Diluted (in dollars) 1 : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (4,499) (8,156) 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$4,499,000 (2003 - US$8, 156,000) and on the weighted average number of 5,580,897,243 shares (2003 - 5,580,897,243 shares) in issue during the year. No diluted loss per share for the year ended 31st December, 2004 and 31st December, 2003 are presented as the dilutive potential ordinary shares were anti-dilutive. 2. 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 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. 3. BASIS OF PRESENTATION For the year ended 31st December, 2004, the Group had reported losses attributable to shareholders of approximately US$4,499,000 (2003 - US$8, 156,000). As at 31st December, 2004, the Group had net current liabilities of approximately US$3,471,000 (2003 - US$14,178,000) and outstanding bank loans of approximately US$75,212,000 (2003 - US$78,677,000) of which approximately US$14,342,000 (2003 - US$24,067,000) was due for repayment within the next twelve months. During the year ended 31st December, 2004, the Group has successfully rescheduled repayment of certain long-term bank loans granted to a wholly owned subsidiary of US$59,211,000. As a result, the principal amount of the long-term bank loans repayable in the year ended 31st December, 2004 have been reduced from approximately US$11,418,000 to US$3,177,000. Subsequent to 31st December, 2004, the Group has successfully renewed short-term bank loans of approximately US$2,350,000 for a further year to the second quarter of 2006. In addition, the Group continues its efforts to minimise capital expenditures, rationalise costs and enhance operating results. In the opinion of the directors, the measures have improved and will continue to improve the Group's working capital and debt maturity profile. Furthermore, the directors consider that the Group will be able to obtain ongoing support from its bankers and generate sufficient cashflows from future operations to cover its operating costs and to meet its financing commitments. 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 31st December, 2004. Accordingly, 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.