Yunkang Group Limited — Earnings Release 2003

Aug 7, 2002

Listed Company Information

LEGEND GROUP<00992> - Results Announcement (Summary) Legend Group Limited announced on 7/8/2002: (stock code: 992) Year end date: 31/3/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: N/A (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 30/6/2002 to 30/6/2001 ('000) ('000) Turnover : 4,796,352 6,094,146 Profit/(Loss) from Operations : 286,576 282,864 Finance cost : Nil (10,942) Share of Profit/(Loss) of Associates : 7,207 (3,166) Share of Profit/(Loss) of Jointly Controlled Entities : (18,251) Nil Profit/(Loss) after Tax & MI : 267,916 250,890 % Change over Last Period : +6.8% EPS/(LPS)-Basic : 3.57 cents 3.32 cents -Diluted : 3.56 cents 3.30 cents Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : 267,916 250,890 1st Quarter Dividend per Share : Nil Nil (Specify if with other options) : N/A N/A B/C Dates for 1st Quarter Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: 1. Basis of preparation (a) The Directors are responsible for the preparation of Legend Group Limited and its subsidiaries' (the "Group") unaudited quarterly financials. These unaudited quarterly financials have been prepared in accordance with Statement of Standard Accounting Practice No. 25 "Interim Financial Reporting" issued by the Hong Kong Society of Accountants. At the request of the Directors, the unaudited financials for the three months ended 30 June 2002, as far as the consistency of the adoption of the accounting policies and method of calculation with those used in the annual accounts for the year ended 31 March 2002 are concerned, have been reviewed by the Company's auditors. (b) As the spin-off of Digital China Holdings Limited and its subsidiaries (collectively, "DCHL") from the Group (the "Spin-off") was substantial to the operating results of the Group, the Directors have prepared unaudited proforma consolidated results of the Group for the corresponding period as if the Spin-off had been completed as at 31 March 2000. The unaudited proforma consolidated results will be published in the newspapers. 2. Principal accounting policies The accounting policies and methods of calculation used in the preparation of these unaudited condensed quarterly financials are consistent with those used in the annual accounts for the year ended 31 March 2002 except that the Group has changed certain of its accounting policies following its adoption of the following Statements of Standard Accounting Practice (SSAPs) issued by the Hong Kong Society of Accountants which are effective for accounting periods commencing on or after 1 January 2002: SSAP 1 (revised) : Presentation of financial statements SSAP 11 (revised) : Foreign currency translation SSAP 15 (revised) : Cash flow statements SSAP 25 (revised) : Interim financial reporting SSAP 33 : Discontinuing operations SSAP 34 : Employee benefits 3. Basic and diluted earnings per share The calculation of basic and diluted earnings per share is based on the following data: 3 months ended 3 months ended 30 June 2002 30 June 2001 (unaudited) (unaudited) Earnings for the purposes of basic and diluted earnings per share HK$267,916,000 HK$250,890,000 ============== ============== Weighted average number of shares for the purposes of basic earnings per share 7,508,347,888 7,559,457,251 Effect of potential dilutive shares 12,336,310 41,932,798 -------------- -------------- Weighted average number of shares for the purposes of diluted earnings per share 7,520,684,198 7,601,390,049 ============== ============== 4. Analysis of turnover and profit from continuing operations and discontinued operations Primary reporting format - geographical segments (i) For the three months ended 30 June 2002: People's Republic Asia Pacific North Group of China ("PRC") (excluding PRC) America Europe Total (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Profit and loss account Turnover 4,698,101 1,457 3,744 93,050 4,796,352 ========================================================================== Segment operating results 259,335 (456) 343 9,200 268,422 =========================================================== Gains on disposal of investment securities 6,401 - - - 6,401 Amortization of Intangible assets (1,838) - - - (1,838) Finance income 13,591 Finance costs - --------- Contribution to operating profit 286,576 Share of losses of jointly controlled entities (18,251) - - - (18,251) Share of profits of associated companies 7,207 - - - 7,207 ---------- Profit before taxation 275,532 Taxation (10,919) ---------- Profit after taxation 264,613 Minority interests 3,303 ---------- Profit attributable to shareholders 267,916 ========= (ii) For the three months ended 30 June 2001: Asia Pacific North Group PRC (excluding PRC) America Europe Total (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Profit and loss account Turnover 5,802,016 98,000 33,368 160,762 6,094,146 ========================================================================== Segment operating results 239,678 4,796 7,551 8,264 260,289 ================================================================ Finance income 22,575 Finance costs (10,942) --------- Contribution to operating profit 271,922 Share of losses of associated companies (3,166) - - - (3,166) --------- Profit before taxation 268,756 Taxation (11,422) --------- Profit after taxation 257,334 Minority interests (6,444) --------- Profit attributable to shareholders 250,890 ======== Secondary reporting format - business segments (i) For the three months ended 30 June 2002: Contribution to Turnover operating profit (unaudited) (unaudited) HK$'000 HK$'000 Corporate IT business 2,495,236 163,876 Consumer IT business 1,832,654 114,471 Handheld device business 261,092 4,173 IT service business 36,995 (10,692) Contract Manufacturing business 170,375 10,185 Gains on disposal of investment securities 6,401 Amortization of intangible assets (1,838) ----------------------------- 4,796,352 286,576 ============================= (ii) For the three months ended 30 June 2001: Contribution to Turnover operating profit (unaudited) (unaudited) HK$'000 HK$'000 Corporate IT business 2,299,940 129,506 Consumer IT business 1,752,389 100,565 Handheld device business 61,049 (1,233) Contract Manufacturing business 377,609 36,463 Others 1,603,159 6,621 ------------------------------- 6,094,146 271,922 ===============================