Tomson Group Limited — Earnings Release 2002

Apr 23, 2003

Listed Company Information

ROSEDALE HOTEL<00149> - Results Announcement Rosedale Hotel Group Limited announced on 23/4/2003: (stock code: 00149 ) Year end date: 31/12/2002 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2002 from 01/01/2001 to 31/12/2002 to 31/12/2001 Note ('000 ) ('000 ) Turnover : 181,692 114,948 Profit/(Loss) from Operations : (92,231) (551,951) Finance cost : (44,680) (12,404) Share of Profit/(Loss) of Associates : (151) (1,501) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (99,810) (393,709) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.067) (0.316) -Diluted (in dollars) : (0.067) N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (99,810) (393,709) 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. Adoption of new and revised Statements of Standard Accounting Practice In the current year, the Group has adopted, for the first time, a number of new and revised Statements of Standard Accounting Practice ("SSAPs") issued by the Hong Kong Society of Accountants. The adoption of these new and revised SSAPs has resulted in a change in the format of presentation of the cash flow statement and the statement of changes in equity, and in adoption of these new and revised accounting policies has had no material effect on the results for the current or prior accounting years. Accordingly, no prior year adjustment has been required. 2. Change in Accounting Policies During the year, the Group has reviewed the appropriateness of the accounting policy adopted for hotel property following the group reorganisation, whereby, the Group acquired subsidiaries engaging in hotel operations through new issue or placement of shares and convertible notes, details of which were set out in the circular to the Company's shareholder dated 5th October, 2002 and 21st October, 2002. In previous years, hotel properties were stated at the open market value based on professional valuations at the balance sheet date. The directors determined that with effect from 1st January, 2002, hotel properties are stated at cost less accumulated impairment loss. This change in accounting policy would provide a better presentation on the Group's principal asset. The change in accounting policy has been applied retrospectively, resulting in no material effect on the results for the prior accounting years. Accordingly, no prior year adjustment has been required. 3. Turnover Turnover represents the net amounts received and receivable from outside customers during the year and is analysed as follows: Year ended 31st December 2002 2001 HK$'000 HK$'000 Hotel Operation 56,642 50,518 Sales of properties 51,231 58,800 Property rental income 7,401 5,630 Toll highway income 66,418 - ------- -------- 181,692 114,948 ======== ======== An analysis of the Group's revenue and contribution to operating results by business segments is presented below: For the year ended 31st December, 2002 Continuing Operations Discontinuing Operation Hotel Property Other Toll Opera- sales and Property opera- highway Consolid- tion development rental tion operations Elimination ated ------ ----------- --------- ----- ---------- ---------- ---------- HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales 56,642 51,231 7,401 992 66,418 - 182,684 ======================================================================== RESULT Segment result (517) (7,418) (8,515) (272) (45,968) (62,690) ================================================== Unallocated corporate expenses (29,541) --------- Loss from operations (92,231) Finance costs (44,680) Share of result of an associate (151) -------- Loss before minority interests (137,062) ========= For the year ended 31st December, 2001 Continuing Operations Discontinuing Operation Hotel Property Other Toll Opera- sales and Property opera- highway Consolid- tion development rental tion operations Elimination ated ------ ----------- --------- ----- ---------- ---------- ---------- HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales 50,518 58,800 5,630 4,002 - - 118,950 Inter- segment sales - - - 1,685 - (1,685) - _________________________________________________________________________ Total revenue 50,518 58,800 5,630 5,687 - (1,685) 118,950 ======= ======== ====== ======= ============ ======== ======== Inter-segment sales are charged at terms determined and agreed between the group companies. RESULT Segment result (18,125) (119,974)(18,579)(10,537) (360,272) - (527,487) ============================================================== Unallocated corporate expenses (24,464) Loss from operations (551,951) Gain on partial disposal of subsidiaries 14,453 Finance costs (12,404) Share of result of an associate (1,501) ---------- Loss before taxation (551,403) Taxation 124 ---------- Loss before minority interests (551,279) ========== 4. Impairment loss and revaluation decrease Year ended 31st December 2002 2001 HK$'000 HK$'000 Impairment loss and revaluation decrease recognised in respect of : - construction in progress - 360,272 - toll highway 70,467 - - properties under/held for development - 28,793 - properties under construction - 63,257 - investment properties 9,069 19,977 - properties held for sale 1,185 11,081 - hotel property - 25,000 ---------- -------- 80,721 508,380 ========== ======= 5. Taxation No provision for Hong Kong Profits Tax has been made in the financial statements as the Company and its subsidiaries had no assessable profit in either year. The taxation credit in 2001 represented overprovision for tax in other jurisdictions in previous years. Tax in other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. No provision for tax in other jurisdictions for the current year has been made in the financial statements as neither the Company nor any of its subsidiaries had any assessable profits subject to tax in other jurisdictions. 6. Loss per share The calculation of the basic loss per share is based on the net loss for the year of HK$99,810,000 (2001: HK$393,709,000) and on the weighted average number of 1,478,816,555 (2001: 1,244,156,281) ordinary shares in issue during the year. The computation of diluted loss per share for the year ended 31st December, 2002 does not assume the conversion of the convertible notes since their conversion would result in a decrease in the loss per share for the year. No diluted loss per share has been calculated for the year ended 31st December, 2001 as there are no dilutive ordinary shares in issue.