Shanghai Able Digital Science&Tech Co., Ltd. — Earnings Release 2001

Apr 12, 2002

Listed Company Information

SE ASIA WOOD<01205> - Results Announcement (Summary) South East Asia Wood Industries Holdings Limited announced on 12/4/2002: (stock code: 1205) Year end date: 31/12/2001 Currency: HKD Auditors' Report: Neither Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2001 from 1/1/2000 to 31/12/2001 to 31/12/2000 ('000) ('000) Turnover : 52,753 58,451 Profit/(Loss) from Operations : (10,220) 30,121 Finance cost : (24) (6,233) 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 : (10,244) 41,224 % Change over Last Period : N/A EPS/(LPS)-Basic : (0.50 cent) 5.69 cents -Diluted : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (10,244) 41,224 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. Basis of presentation The accounting policies and methods of computation used in the preparation of the current year's financial statements are consistent with those used in the last year's financial statements except that the following recently-issued and revised Statements of Standard Accounting Practice ("SSAPs") and related Interpretations issued by the Hong Kong Society of Accountants are effective for the first time. - SSAP 9 (Revised) "Events after the balance sheet date" - SSAP 14 (Revised) "Leases" - SSAP 26 "Segment reporting" - SSAP 30 "Business combinations" - SSAP 31 "Impairment of assets" - SSAP 32 "Consolidated financial statements and accounting for investments in subsidiaries" - Interpretation 13 "Goodwill - continuing requirements for goodwill and negative goodwill previously eliminated against/credited to reserves" Due to the adoption of the above new and revised SSAPs during the current year, the accounting treatment and presentation of certain items and balances in the financial statements have been revised to comply with the new requirements. Accordingly, certain comparative amounts have been reclassified to conform with the current year's presentation. 2. Segment information SSAP 26 was adopted during the year. Segment information is presented in respect of the Group's business and geographical segments. Business segment information is chosen as the primary reporting format because this is more relevant to the Group's internal financial reporting. (a) Business segments The Group has only one business segment, which is the manufacture and sale of plywood products. Therefore, no business segmentation analysis is presented. (b) Geographical segments In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets and capital expenditure are based on the geographical location of the assets. The corporate and others segment includes general corporate income and expense items and unallocated items. The following tables present revenue, profit/(loss) and certain asset and expenditure information for the Group's geographical segments. PRC Thailand Corporate and others Consolidated 2001 2000 2001 2000 2001 2000 2001 2000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue: Sales to external customers 52,050 57,579 703 872 - - 52,753 58,451 Other revenue 142 2,326 - - 20,886 1,841 21,028 4,167 ----------------------------------------------------------------------- Total revenue 52,192 59,905 703 872 20,886 1,841 73,781 62,618 ======================================================================= Segment results (14,413) (14,996) (117) 114 (15,543) (15,312) (30,073) (30,194) ======================================================== Interest and unallocated gains 19,853 724 Waiver of indebtedness due to bank creditors - 59,591 --------------- Profit/(loss) from operating activities (10,220) 30,121 ================ Other segment information: Segment assets 122,976 123,337 - - 1,158,228 37,178 1,281,204 160,515 ========================================================================= Capital expenditure 2,735 1,160 - - 19 2,414 2,754 3,574 ========================================================================= 3. FINANCE COSTS 2001 2000 HK$'000 HK$'000 Interest on bank loans and overdrafts 24 6,233 ======= ======= 4. Tax 2001 2000 HK$'000 HK$'000 Overprovision in prior years - 17,183 ===== ======= No provision for Hong Kong profits tax has been made as the Group had no assessable profits arising in Hong Kong for the year (2000: Nil). A group company operating in the People's Republic of China ("PRC") is exempt from income tax for two years starting from its first profitable year of operation and is entitled to 50% relief from income tax for the following three years under the Income Tax Law of the PRC. No provision for tax has been made as this group company did not generate any assessable profits arising in the PRC during the year. The principal components of the Group's net deferred tax asset position not recognised in the financial statements are as follows: 2001 2000 HK$'000 HK$'000 Accelerated depreciation allowances 1,215 1,473 Tax losses (3,463) (2,053) ----------------------- (2,248) (580) ======================= No provision has been made for taxes which would arise on the remittance to Hong Kong of retained profits of overseas companies as it is not anticipated that these amounts will be remitted in the near future. The Company had no unprovided deferred tax at the balance sheet date (2000: Nil). 5. Net profit/(loss) attributable to shareholders The net loss attributable to shareholders dealt with in the financial statements of the Company is HK$10,244,000 (2000: HK$26,958,000). 6. Earning/(Loss) per shares The calculation of the basic loss per share is based on the net loss attributable to shareholders for the year of HK$10,244,000 (2000: profit of HK$41,224,000) and the weighted average of 2,059,726,027 shares (2000: 724,918,033 shares) in issue during the year, adjusted to reflect the five-to-one share consolidation during the year. The earnings per share for the year ended 31 December 2000 has been adjusted accordingly. Diluted earnings/(loss) per share amount for the years ended 31 December 2001 and 2000 have not been shown because there were no dilutive event existing during these years. 7. Dividend No interim dividend was paid during the year and the prior year. The Directors do not recommend the payment of any dividend in respect of the year (2000: Nil).