Shanghai Able Digital Science&Tech Co., Ltd. — Earnings Release 1999

Jul 26, 2000

Listed Company Information

SE ASIA WOOD<1205> - Results Announcement South East Asia Wood Industries Holdings Limited announced on 26/7/2000: (stock code: 1205) The accounts which contain the following results are modified by the Company's auditor. For more details, please refer to the press announcement to be issued by the Company on 27/7/2000. Year end date: 31/12/2000 Currency: US$ (Audited) (Audited) 15-Month 12-Month Period Period from 1/10/1998 from 1/10/1997 to 31/12/1999 to 30/9/1998 ('000) ('000) Turnover - Continuing : 38,930 56,433 - Discontinued : N/A N/A Operating Profit/(Loss) - Continuing : (48,598) (2,162) - Discontinued : N/A N/A Total Operating Profit/(Loss) : (48,598) (2,162) Share of Profit/(Loss) of Associated Companies : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (48,526) (805) % Change over Last Period : N/A EPS/(LPS)-Basic : (8.10 US cents) (0.13 US cent) -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (48,526) (805) Final Dividend per Share : Nil Nil (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1. CHANGE OF FINANCIAL YEAR END DATE On 14 September 1999, the financial year end date of the Company was changed from 30 September to 31 December effective for the period ended 31 December 1999. 2. EXCEPTIONAL ITEMS Period from 1 October 1998 Year ended to 31 December 30 September 1999 1998 US$'000 US$'000 Loss on disposal of operations in Laos 21,130 - Loss on assignment of receivables 10,867 - Provision for diminution in value of leasehold land and building in Hong Kong 1,779 - Provision for bad and doubtful debts - 2,260 --------- ----------- 33,776 2,260 ========= ========== On 17 November 1999, in view of the unprofitable manufacturing operations in the Lao People's Democratic Republic ("Laos"), the directors of the Company disposed of certain subsidiaries, the principal activity of which was the manufacture of plywood and sawn timber in Laos, to an independent third party. As a result of the disposal, an exceptional loss of US$21,130,000 was accounted for in the current period. Along with the disposal, the net receivables relevant to the Group's operation in Laos of US$13,867,000 were assigned to the same independent third party with a consideration of US$3,000,000. Accordingly, an exceptional loss of about US$10,867,000 was accounted for in the current period. 3. PRIOR YEAR ADJUSTMENT In prior years, deferred pre-operating expenses were costs incurred prior to the commencement of operations and were amortised to the profit and loss account upon commencement of operations on the straight-line basis over a period of five years. The policy of accounting for deferred pre-operating expenses was changed during the period so as to comply with the new Interpretation No. 9 "Accounting for pre-operating costs" issued by the Hong Kong Society of Accountants. In restating the results for prior years on the basis of the new policy, the loss for the year ended 30 September 1998 has been increased by US$184,000, the retained profits brought forward as at 30 September 1997 and 1998 has been decreased by US$528,000 and US$712,000, respectively, the goodwill reserve and minority interests brought forward as at 30 September 1998 has been increased and decreased by US$478,000 and US$584,000, respectively. 4.DIVIDENDS Period from 1 October 1998 Year ended to 31 December 30 September 1999 1998 US$'000 US$'000 Interim dividend HK1.5 cents per ordinary share - 1,154 ========= ======== The directors do not recommend the payment of any dividend in respect of the period. 5. LOSS PER SHARE The calculation of loss per share is based on the net loss attributable to shareholders for the period of US$48,526,000 (Year ended 30 September 1998: US$805,000 (restated)) and the weighted average of 600,000,000 shares (Year ended 30 September 1998: 600,000,000 shares) in issue during the period. Fully diluted loss per share is not shown because there is no dilution impact for period/year.