Smart Digital Technology Group Limited — Earnings Release 2004

Apr 19, 2005

Listed Company Information

Listed Company Information
SUN INNOVATION<00547> - Results Announcement Sun Innovation Holdings Limited announced on 19/04/2005: (stock code: 00547 ) Year end date: 31/12/2004 Currency: HKD Auditors' Report: Unqualified (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 : 48,266 44,153 Profit/(Loss) from Operations : (100,493) (46,957) Finance cost : (2,350) (883) 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 : (98,124) (46,727) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.020) (0.011) -Diluted (in dollars) : (0.020) (0.011) Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (98,124) (46,727) 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 Annual General Meeting : 18/05/2005 to 24/05/2005 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1) Turnover 2004 2003 HK$'000 HK$'000 Turnover Continuing operations - Property investment 2,743 3,252 - Telecommunication 4,434 438 - Entertainment Media 31,665 1,215 Discontinuing operations - Fire protection and suppression 9,424 39,248 ------ ------- 48,266 44,153 ======= ======= 2) LOSS FROM OPERATING ACTIVITIES 2004 2003 HK$'000 HK$'000 Continuing Operations - Property investment (1,467) (4,849) - Telecommunication (10,765)(2,658) - Entertainment Media (71,586)(763) ------------ -------- (83,818) (8,270) Discontinuing Operations - Fire protection and suppression (1,313) (11,487) ------------ --------- (85,131) (11,487) Unallocated revenues 397 980 Unallocated costs (14,753) (13,871) (Loss) gain on disposal of subsidiaries engaged in discontinuing operations (1,006) (14,309) ------------ --------- (100,493)(46,957) ============ ========= Due to rapid changes of market conditions in telecommunication value added services in Hong Kong and Mainland China, particularly, tighter statutory regulations and prolonged cycle of approval of launch of new products in Mainland China market, the management performed an assessment of the businesses with reference to the value in use as at 31 December 2004. As a result, based on the estimated value, the Group recognized impairment losses for goodwill of HK$52.4 million in Entertainment Media segment. In second half of 2004, a Japan strategic partner of a Hawaii Telecommunication subsidiary restructured its businesses by terminating certain services and changing scope of services provided. The business restructuring of the Japan partner resulted significant reduction of revenue of that subsidiary. The management reviewed that subsidiary with reference to value in use as at 31 December 2004 and subsequently recognized impairment loss for goodwill at HK$2.5 million in Telecommunication segment. 3) Loss per share The calculation of basic and diluted loss per share is based on the following data: 2004 2003 HK$'000 HK$'000 Loss for the purpose of basic and diluted loss per share - Net loss for the year 98,124 46,727 ====== ====== Number of shares 2004 2003 Weighted average number of ordinary shares for the purpose of basic and diluted loss per share 4,829,729,410 4,342,438,973 ============== ============== The computation of diluted loss per share does not assume the conversion of convertible preference shares and share options since their exercise would result in a decrease effect in loss per share.