Tomson Group Limited — Earnings Release 2004

Apr 22, 2005

Listed Company Information

Listed Company Information
CHINA VELOCITY<00149> - Results Announcement China Velocity Group Limited announced on 22/04/2005: (stock code: 00149 ) 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 : 12,605 132,583 Profit/(Loss) from Operations : (224,463) (148,312) Finance cost : (6,472) (36,391) 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 : (235,515) (170,207) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.85) (0.61) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (235,515) (170,207) 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. BASIS OF PREPARATION OF FINANCIAL STATEMENTS In preparing the financial statements, the directors of the Company have given careful consideration to the liquidity position of the Group in light of its net current liabilities of HK$39,183,000 as at 31st December 2004. In particular, the Group has other borrowing of HK$100,000,000 which is repayable on 30th June, 2005. As disclosed in note 38(a), subsequent to the balance sheet date, a subsidiary of the Company entered into conditional sale and purchase agreements to dispose of its entire 100% interest in another subsidiary for an aggregate cash consideration of HK$130,000,000. Under the terms of the agreements, the completion date is 24th May, 2005 and the directors are confident that all conditions will be met by that date. On this basis, the directors are satisfied that the Group will be able to repay the other borrowing on 30th June, 2005 and meet in full its other financial obligations as they fall due for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. 2. TURNOVER Turnover represents the net amounts received and receivables from outside customers during the year as follows: 2004 2003 HK$'000 HK$'000 Property rental income 12,605 12,517 Hotel operation - 120,066 --------------------- 12,605 132,583 --------------------- An analysis of the Group's turnover and contribution to operating results by business segment is presented below: Year ended 31st December, 2004 ------------------------------ Property sale and Property development rental Consolidated ----------- -------- ------------ HK$'000 HK$'000 HK$'000 TURNOVER External sales - 12,605 12,605 ----------- -------- ---------- RESULT Segment result (119,490) (94,403) (213,893) =========== ========= ---- ---------- Unallocated corporate expenses (10,570) ----------- Loss from operations (224,463) Finance costs (6,472) --------- Loss before taxation (230,935) ========== Year ended 31st December, 2003 ------------------------------ Continuing operations Discontinuing operation ---------------------------------- ------------- Property sale and Property Other Hotel development rental operations operation Consolidated ----------- ------ ---------- --------- ------------ HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 TURNOVER External sales - 12,517 - 120,066 132,583 ------- -------- -------- -------- -------- RESULT Segment result (5,331) (1) 4,651 (121,792) (122,473) ======== ======== ======= ======== Unallocated corporate expenses (25,839) --------- Loss from operations (148,312) Finance costs (36,391) --------- Loss before taxation (184,703) ========= 3. IMPAIRMENT LOSS AND REVALUATION DEFICIT Year ended 31st December, 2004 2003 ---- ---- HK$'000 HK$'000 Impairment loss and revaluation deficit recognised in respect of: - properties held for resale 16,650 - - investment properties 113,682 1,317 - properties under/held for development - 4,400 - properties under construction 91,288 527 - hotel properties - 110,259 - payment for investments - 18,000 --------- --------- 221,620 134,503 ========= ========= 4. LOSS PER SHARE The calculation of the basic loss per share is based on the net loss for the year of approximately HK$235,515,000 (2003: HK$170,207,000) and on 277,408,596 ordinary shares (2003: 277,408,596) in issue during the year. No diluted loss per share has been presented as there is no potential ordinary share in issue during the year.