Yadea Group Holdings Ltd. — Earnings Release 2001

Oct 15, 2001

Listed Company Information

CHAODA MODERN<00682> - Results Announcement (Summary) Chaoda Modern Agriculture (Holdings) Limited announced on 15/10/2001: (stock code: 682) Year end date: 30/6/2001 (Audited) Currency: RMB Pro forma (Audited) combined Last Year (Audited) Corresponding ended from Period from Year ended 1/7/2000 to 26/11/1999 to from 1/7/1999 30/6/2001 30/6/2000 to 30/6/2000 ('000) ('000) ('000) Turnover : 725,546 55,080 154,225 Profit/(Loss) from Operations : 444,032 34,332 92,342 Finance cost : (1,588) 0 0 Share of Profit/(Loss) of Associates : 0 0 0 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 0 Profit/(Loss) after Taxation & MI : 440,821 34,332 67,314 % Change over Last Period (Compared with pro forma combined of last year) : +555% EPS/(LPS)-Basic : 31 cents 3 cents 5.6 cents -Diluted : N/A N/A N/A Extraordinary (ETD) Gain/(Loss): 0 0 0 Profit/(Loss) after ETD Items : 440,821 34,332 67,314 Final Dividend per Share : RMB7.7 cents N/A N/A (HK7.3 cents) (Specify if with other options): N/A N/A N/A B/C Dates for Final Dividend : 5/12/2001 to 11/12/2001 bdi. Payable Date : Around 7/1/2002 B/C Dates for Annual General Meeting : 5/12/2001 to 11/12/2001 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: (1) The Company was incorporated in the Cayman Islands on 24th August 2000 as an exempted company with limited liability under the Companies Law (2000 Revision) of the Cayman Islands. On 1st December 2000, pursuant to a group reconstruction (the "Reconstruction"), in preparation for the listing of the Company's shares on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), the Company acquired the entire issued share capital of Timor Enterprise Limited ("Timor", the Group's former ultimate holding company) through a share swap and became the holding company of Timor and its subsidiaries. Details of the Reconstruction have been set out in the Company's prospectus dated 5th December 2000. The Company's shares were listed on the Stock Exchange on 15th December 2000. Merger accounting is adopted in the preparation of the Group's consolidated financial statements pursuant to SSAP No.27, "Accounting for Group Reconstructions", under which the financial statements of the Company and the consolidated financial statements of Timor are combined as if the Reconstruction has been carried out from 26th November 1999, the date of incorporation of Timor. The consolidated results of Timor and its subsidiaries were prepared based on acquisition accounting, which include the results of Timor from 26th November 1999 (the date of incorporation of Timor) and the results of its subsidiaries from their respective dates of acquisition to 30th June 2000. (2) This pro forma combined profit and loss account of the Group for the year ended 30th June 2000 is extracted from the Company's prospectus, prepared for the purpose of listing the Company's shares in the Stock Exchange, dated 5th December 2000, which does not form part of the Group's statutory financial statements and is presented for comparison purpose only. The Group's statutory financial statements are prepared based on acquisition accounting (see remark 1 above) and the consolidated results only comprise the results of Timor since 26th November 1999 (the date of incorporation of Timor) and the results of the subsidiaries acquired by Timor since their respective dates of acquisition. However, the pro forma profit and loss account presented hereby is prepared as if the subsidiaries acquired by Timor during the months from January to July 2000 had been subsidiaries of the Group since 1st July 1999. (3) Basic earnings per share is calculated based on the profit attributable to shareholders of RMB 440,821,000 and the weighted average number of 1,416,986,000 shares in issue during the period. The comparative earnings per share is calculated based on the profit attributable to shareholders of RMB 34,332,000 and on an aggregate of 1,200,000,000 shares, comprising 2 shares issued at HK$0.1 each on 24th August 2000 immediately after incorporation of the Company together with 998 shares issued upon the Reconstruction and 1,199,999,000 shares issued pursuant to the capitalization issue for the then shareholders of the Company upon completion of Reconstruction, which were deemed to have been in issue since the incorporation date of Timor. The calculation of the pro-forma earnings per share for year ended 30th June 2000 is based on the Group's pro-forma combined profit after taxation and minority interest attributable to shareholders for year ended 30th June 2000 of RMB67,314,000 and 1,200,000,000 shares (the number of shares of the Company right before the placing and public offer, deemed to be in issue throughout the year ended.) There were no potential dilutive ordinary shares in existence for the year ended 30th June 2001, the period ended 30th June 2000 and pro-forma year ended 30th June 2000, therefore, no diluted earnings per share was presented. (4) An analysis of turnover and profit from continuing operations: Breeding Sale of Growing and sale ancillary and sale of food of crops livestock products Total RMB'000 RMB'000 RMB'000 RMB'000 Turnover 705,721 15,948 3,877 725,546 Cost of sales (170,538) (6,440) (2,897) (179,875) -------------------------------------------------- Gross profit 535,183 9,508 980 545,671 Unallocated items:- Other revenues 10,997 Selling and distribution expenses (61,325) General and administrative expenses (46,326) Net other operating expenses (4,985) --------- Operating profits 444,032 =========