Tomson Group Limited — Earnings Release 2003

Apr 23, 2004

Listed Company Information

Listed Company Information
CHINA VELOCITY<00149> - Results Announcement China Velocity Group Limited announced on 23/4/2004: (stock code: 00149 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2003 from 1/1/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 132,583 181,692 Profit/(Loss) from Operations : (148,312) (92,231) Finance cost : (36,391) (44,680) Share of Profit/(Loss) of Associates : N/A (151) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : (170,207) (99,810) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.61) (0.67) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (170,207) (99,810) 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. CHANGES IN ACCOUNTING POLICIES In the current year, the Group has adopted, for the first time, the following Hong Kong Financial Reporting Standard ("HKFRS") issued by the Hong Kong Society of Accountants ("HKSA"). The term of HKFRS is inclusive of Statements of Standard Accounting Practice ("SSAP(s)") and Interpretations approved by the HKSA: Income taxes In the current year, the Group has adopted SSAP 12 (Revised) "Income Taxes". The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. In the absence of any specific transitional requirements in SSAP 12 (Revised), the new accounting policy has been applied retrospectively. Comparative amounts for 2002 have been restated accordingly. The adoption of this SSAP has had no material effects on the results for the current or prior accounting periods. As a result of this change in policy, the balances on the Group's property, plant and equipment and deferred taxation liability as at 31st December, 2002 have been increased by HK$243,105,000. 2. TURNOVER Turnover represents the net amounts received and receivable from outside customers during the year and is analysed as follows: 2003 2002 HK$'000 HK$'000 Hotel operations 120,066 56,642 Sales of properties - 51,231 Property rental income 12,517 7,401 Toll highway income - 66,418 _______ _______ 132,583 181,692 ======= ======= For the year ended 31st December, 2003 Discontinuing Continuing operations operation Property sales and Property Other Hotel development rental operations operation Elimination Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales - 12,517 - 120,066 - 132,583 ======================================================================== RESULT Segment result (5,331) (1) 4,651 (121,792) - (122,473) ============================================================== Unallocated corporate expenses (25,839) _______ Loss from operations (148,312) Finance costs (36,391) _______ Loss before taxation (184,703) _______ _______ For the year ended 31st December, 2002 Discontinuing Continuing operations operations Property Toll sales and Property Other highway Hotel Elimi- Consoli- development rental operations operation operation nation dated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales 51,231 7,401 - 66,418 56,642 - 181,692 ======================================================================== RESULT Segment result (7,418) (8,515) (272) (45,968) (517) - (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 taxation (137,062) ========= 3. IMPAIRMENT LOSS AND REVALUATION DECREASE 2003 2002 HK$'000 HK$'000 Impairment loss and revaluation decrease recognised in respect of: - hotel property 110,259 - - payment for investments 18,000 - - properties under/held for development 4,400 - - investment properties 1,317 9,069 - properties under construction 527 - - toll highway - 70,467 - properties held for sale - 1,185 _______ _______ 134,503 80,721 ======= ======= 4. TAXATION The taxation credit for the year ended 31st December, 2003 represented deferred taxation credit. 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. Tax in other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. No provision for tax in other jurisdictions for both years 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. 5. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of HK$170,207,000 (2002: HK$99,810,000) and on the weighted average number of 277,408,596 (2002: 147,881,656) ordinary shares in issue during the year. The weighted average number of ordinary shares used for the purpose of calculating basic and diluted earnings per share for the year ended 31st December, 2002 has been retrospectively adjusted for the effect of the consolidation of every ten ordinary shares of US$0.002 each into US$0.02 each. No diluted loss per share has been presented as there is no dilutive potential shares in issue.