Smart Digital Technology Group Limited — Earnings Release 1998

May 19, 1999

Listed Company Information

MANSION HOLDING<0547> - Results Announcement Mansion Holdings Limited announced on 18/5/1999: (stock codes: Ord:547 & War:654) The accounts which contain the following results are qualified by the Company's auditor. For more details, please refer to the press announcement issued by the Company on 19/5/1999. Year end date: 31/12/1998 Currency: HK$ Last Current Corresponding Period Period from 1/1/1998 from 1/1/1997 to 31/12/1998 to 31/12/1997 ('000) ('000) Turnover/Interest Income : 200,512 394,490 Profit-Continuing Operations - Operating Profit/(Loss) : (59,371) (137,836) - Exceptional Items : 398,577 (714,845) - Discontinued Operations : - - Total Operating Profit/(Loss) : 339,206 (852,681) Share of Profit/(Loss) of Associated Companies : - - Profit/(Loss) after Tax & MI : 339,137 (857,147) % Change over Last Period : N/A EPS/(LPS)-Basic : $0.25 ($1.89) -Diluted : $0.23 ($1.86) Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 339,137 (857,147) Final Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Final Dividend : - Payable Date : - B/C Dates for (-) General Meeting : - Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) TURNOVER 1998 1997 HK$'000 HK$'000 Contracting Income 198,206 325,306 Trading Income 2,306 69,184 --------- --------- 200,512 394,490 ======= ======= (2) EXCEPTIONAL ITEMS: 1998 1997 HK$'000 HK$'000 Gain arising on extinguishment of bank debts, net of expenses(a) 417,977 - Provision for bad and doubtful debts (12,392) (276,618) Loss on disposal of subsidiaries (7,008) - Losses on contracts terminated - (263,517) Losses on irrecoverable contract work in progress - (81,009) Provision against other investments - (80,278) Provision for impairment in value of fixed assets - (13,423) ---------- ----------- 398,577 (714,845) ======= ======= (a) This represents gains arising on exingishment of bank debts by the creditor banks pursuant to the financial restructuring. In recognising the gain in the profit and loss account, the directors have, in the absence of definitive guidance under general accepted accounting practices in Hong Kong, applied, after due considerations, the provisions of Statement of Financial Accounting Standards No. 15 on "Accounting by Debtors and Creditors for Troubled Debt Restructuring" issued by Financial Accounting Standard Board of the United States in the accounts. Further details of the financial restructuring are set out in the annual report of the Company. (3) EARNINGS/(LOSS) PER SHARE The calculation of the basic earnings/(loss) per ordinary share is based on the Group's profit attributable to the shareholders of HK$339,137,000 (1997:Loss of HK$857,147,000) and the weighted average of 1,364,988,573 (1997:452,806,550) ordinary shares in issue during the year. The calculation of diluted earnings/(loss) per share is based on the adjusted consolidated profit attributable to shareholders of approximately HK$340,119,000 (1997: Loss of HK$857,147,000) on the assumption that (i) the weighted average of 1,364,988,573 (1997:452,806,550) ordinary shares in issue during the year, (ii) the weighted average of 21,370 (1997: 7,777,000) ordinary shares deemed to be issued at no consideration if all outstanding warrants and options had been exercised, and (iii) the weighted average number of 136,292,169 ordinary shares (1997:Nil) deemed to be issued by the conversion of the convertible notes of HK$30,863,000 (1997:HK$Nil). For more details, please refer to the press announcement today.