Yunkang Group Limited — Earnings Release 2003

May 28, 2003

Listed Company Information

LEGEND GROUP<00992> - Results Announcement (Summary) Legend Group Limited announced on 28/5/2003: (stock code: 992) Year end date: 31/3/2003 Currency: HKD Auditors' Report: Unqualified (Audited) (Audited) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 31/3/2003 to 31/3/2002 ('000) ('000) Turnover : 20,233,290 20,853,254 Profit/(Loss) from Operations : 1,049,601 1,097,490 Finance cost : (20) (11,785) Share of Profit/(Loss) of Associates : 13,826 (12,979) Share of Profit/(Loss) of Jointly Controlled Entities : (34,756) 8,468 Profit/(Loss) after Tax & MI : 1,017,152 1,044,900 % Change over Last Period : -2.66% EPS/(LPS)-Basic : 13.55 cents 13.86 cents -Diluted : 13.54 cents 13.79 cents Extraordinary (ETD) Gain/(Loss) : Nil Nil Profit/(Loss) after ETD Items : 1,017,152 1,044,900 Final Dividend per Share : 3 cents 3.6 cents Special Dividend per Share : 5.2 cents Nil (Specify if with other options) : N/A N/A B/C Dates for Final and Special Dividend : 10/7/2003 to 15/7/2003 bdi. Payable Date : on or before 13/8/2003 B/C Dates for Annual General Meeting : 10/7/2003 to 15/7/2003 bdi. Other Distribution for Current Period : Nil B/C Dates for Other Distribution : N/A Remarks: 1. Basis of preparation With effect from 1st June, 2001, Digital China Holdings Limited and its subsidiaries (collectively, "DCHL") were spun off (the "Spin-off") from Legend Group Limited and its subsidiaries (the "Group"). As 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 year ended 31st March, 2002 as if the Spin-off was effective throughout the year. The unaudited proforma consolidated results will be published on newspapers. 2. Principal accounting policies The accounts have been prepared in accordance with accounting principles generally accepted in Hong Kong and comply with accounting standards issued by the Hong Kong Society of Accountants ("HKSA"). They have been prepared under the historical cost convention except that investment securities are stated at fair value. In the current year, the Group adopted the following Statements of Standard Accounting Practice ("SSAP") issued by the HKSA which are, unless otherwise stated, effective for accounting periods commencing on or after 1st January, 2002. SSAP 1 (revised) : Presentation of financial statements SSAP 11 (revised) : Foreign currency translation SSAP 15 (revised) : Cash flow statements SSAP 34 (revised) : Employee benefits The adoption of the above SSAP has no material effect on the Group's accounts. 3. Earnings per share The calculation of basic and diluted earnings per share is based on the following data: 2003 2002 Earnings for the purposes of basic and diluted earnings per share (HK$'000) 1,017,152 1,044,900 =========================== Weighted average number of shares for the purposes of basic earnings per share 7,504,340,579 7,539,152,694 Effect of potential dilutive shares 9,827,387 36,580,910 ----------------------------- Weighted average number of shares for the purposes of diluted earnings per share 7,514,167,966 7,575,733,604 ============================== 4. The Board also recommenced a special dividend of HK$5.2 cents per share (2002: nil) to further increase returns to shareholders. 5. Analysis of turnover and profit from operations. Primary reporting format-geographical segments (i) For the 12 months ended 31 March 2003: People's Republic of Asia Pacific North Group China ("PRC") (excluding PRC) America Europe Total 2003 2003 2003 2003 2003 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Profit and loss account Turnover 19,738,075 5,818 14,999 474,398 20,233,290 ============================================================== Segment operating results 1,011,204 (412) 130 3,494 1,014,416 ============================================== Losses on disposal of subsidiaries, an associated company and investment securities (26,802) - - - (26,802) Amortisation of intangible assets (15,246) - - - (15,246) Interest income 77,233 Finance cost (20) --------- Contribution to operating profit 1,049,581 Share of losses of jointly controlled entities (34,756) - - - (34,756) Share of profits of associated companies 13,826 - - - 13,826 -------- Profit before taxation 1,028,651 Taxation (26,018) --------- Profit after taxation 1,002,633 Minority interests 14,519 ---------- Profit attributable to shareholders 1,017,152 ========== (ii) For the 12 months ended 31 March 2002: Asia Pacific North Group PRC (excluding PRC) America Europe Total 2002 2002 2002 2002 2002 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Profit and loss account Turnover 19,702,459 282,283 104,872 763,640 20,853,254 ========================================================================= Segment operating results 772,684 30,500 17,833 44,873 865,890 ======================================================= Gains on disposal of subsidiaries, an associated companies and investment security 164,240 - - - 164,240 Interest income 67,360 Finance costs (11,785) ---------- Contribution to operating profit 1,085,705 Share of profits of jointly controlled entities 8,468 - - - 8,468 Share of losses of associated companies (12,979) - - - (12,979) --------- Profit before taxation 1,081,194 Taxation (23,092) --------- Profit after taxation 1,058,102 Minority interests (13,202) --------- Profit attributable to shareholders 1,044,900 ========== Secondary reporting format-business segments Contribution to Turnover operating profit 2003 2003 HK$'000 HK$'000 Corporate IT business 10,803,311 744,153 Consumer IT business 6,822,633 363,527 Handheld device business 1,440,328 29,017 IT Service business 183,800 (61,405) Contract manufacturing business 983,218 8,554 Others - - Gains on disposal of subsidiaries, an associated company and investment securities - (26,802) Amortisation of goodwill - (7,463) -------------------------------- 20,233,290 1,049,581 ================================ Contribution to Turnover operating profit 2002 2002 HK$'000 HK$'000 Corporate IT business 10,077,796 573,077 Consumer IT business 7,400,769 234,335 Handheld device business 216,434 (18,906) IT Service business - - Contract manufacturing business 1,533,864 147,901 Others 1,624,391 (14,942) Gains on disposal of subsidiaries, an associated company and investment securities - 164,240 Amortisation of goodwill - - -------------------------------- 20,853,254 1,085,705 ================================