Yunkang Group Limited — Earnings Release 2003

Jan 29, 2003

Listed Company Information

LEGEND GROUP<00992> - Results Announcement (Summary) Legend Group Limited announced on 29/1/2003: (stock code: 992) Year end date: 31/3/2003 Currency: HKD Auditors' Report: N/A Review of Third Quarter Results by: Audit Committee (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 31/12/2002 to 31/12/2001 ('000) ('000) Turnover : 15,967,638 16,726,569 Profit/(Loss) from Operations : 865,777 820,128 Finance cost : 0 (11,734) Share of Profit/(Loss) of Associates : 18,195 (8,467) Share of Profit/(Loss) of Jointly Controlled Entities : (33,777) (924) Profit/(Loss) after Tax & MI : 842,059 765,384 % Change over Last Period : +10.0% EPS/(LPS)-Basic : 11.22 cents 10.14 cents -Diluted : 11.20 cents 10.08 cents Extraordinary (ETD) Gain/(Loss) : NIL NIL Profit/(Loss) after ETD Items : 842,059 765,384 Third Quarter Dividend per Share : NIL NIL (Specify if with other options) : N/A N/A B/C Dates for Third 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 ("SSAP") No. 25 "Interim Financial Reporting" issued by the Hong Kong Society of Accountants ("HKSA"). These condensed accounts should be read in conjunction with the audited accounts for the year ended 31 March 2002. (b) With effect from 1 June 2001, Digital China Holdings Limited and its subsidiaries (collectively known as "DCHL") were spun off from the Group (the "Spin-off"). 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 corresponding nine months ended 31 December 2001 as if the Spin-off was effective throughout the period. The unaudited proforma consolidated results will be published in newspapers 2. Principal accounting policies The principal accounting policies and methods of calculations used in the preparation of these unaudited quarterly financials are consistent with those used in the annual accounts for the year ended 31 March 2002. The Group has presented its cash flow statement with effect from 1 April 2002 based on SSAP 15 (revised) "Cash flow statements" issued by HKSA which is effective for accounting periods commencing on or after 1 January 2002. The comparative figures have been reclassified accordingly. In addition, the following new/revised SSAPs issued by the HKSA became effective for accounting periods commencing on or after 1 January 2002 are also applicable to the Group: SSAP 1 (revised) : Presentation of financial statements SSAP 11 (revised) : Foreign currency translation SSAP 25 (revised) : Interim financial reporting SSAP 33 : Discontinuing operations SSAP 34 (revised) : Employee benefits The adoption of the above SSAPs has no material effect on the Group's prior year quarterly financials. 3. Earnings per share The calculation of basic and diluted earnings per share is based on the following data: 9 months ended 9 months ended 31 December2002 31 December 2001 (unaudited) (unaudited) Earnings for the purposes of basic and diluted earnings per share (HK$'000) 842,059 765,384 ======= ======= Weighted average number of shares for the purposes of basic earnings per share 7,505,805,541 7,545,758,130 Effect of potential dilutive shares 11,423,220 43,398,147 ------------- ------------- Weighted average number of shares for the purposes of diluted earnings per share 7,517,228,761 7,589,156,277 ============= ============= 4. Analysis of turnover and profit from continuing operations Primary reporting format-geographical segments (i) For the nine months ended 31 December 2002: People's Republic of Asia Pacific China ("PRC") (excluding PRC) (unaudited) (unaudited) HK$'000 HK$'000 Profit and loss account Turnover 15,588,208 5,055 Segment operating results 809,634 (204) Gains on disposal of a subsidiary and Investment securities 6,287 - Amortisation of Intangible assets (9,964) - Interest income Finance cost Contribution to operating profit Share of losses of jointly controlled entities (33,777) - Share of profits of associated companies 18,195 - North America Europe (unaudited) (unaudited) HK$'000 HK$'000 Profit and loss account Turnover 13,516 360,859 Segment operating results 535 4,750 Gains on disposal of a subsidiary and investment securities - - Amortisation of Intangible assets - - Interest income Finance cost Contribution to operating profit Share of losses of jointly controlled entities - - Share of profits of associated companies - - Group Total (unaudited) HK$'000 Profit and loss account Turnover 15,967,638 Segment operating results 814,715 Gains on disposal of a subsidiary and investment securities 6,287 Amortisation of Intangible assets (9,964) Interest income 54,739 Finance cost - ------------ Contribution to operating profit 865,777 Share of losses of jointly controlled entities (33,777) Share of profits of associated companies 18,195 ------------ Profit before taxation 850,195 Taxation (16,699) ------------ Profit after taxation 833,496 Minority interests 8,563 ------------ Profit attributable to shareholders 842,059 ============ (ii) For the nine months ended 31 December 2001: Asia Pacific PRC (excluding PRC) (unaudited) (unaudited) HK$'000 HK$'000 Profit and loss account Turnover 15,745,970 280,792 Segment operating results 620,682 30,438 Gains on disposal of subsidiaries, associated companies and investment securities 57,986 - Interest income Finance costs Contribution to operating profit Share of losses of jointly controlled entities (924) - Share of losses of associated companies (8,467) - North America Europe (unaudited) (unaudited) HK$'000 HK$'000 Profit and loss account Turnover 95,804 604,003 Segment operating results 17,466 38,656 Gains on disposal of subsidiaries, associated companies and investment securities - - Interest income Finance costs Contribution to operating profit Share of losses of jointly controlled entities - - Share of losses of associated companies - - Group Total (unaudited) HK$'000 Profit and loss account Turnover 16,726,569 ========== Segment operating results 707,242 Gains on disposal of subsidiaries, associated companies and investment securities 57,986 Interest income 54,900 Finance costs (11,734) -------- Contribution to operating profit 808,394 Share of losses of jointly controlled entities (924) Share of losses of associated companies (8,467) -------- Profit before taxation 799,003 Taxation (20,417) -------- Profit after taxation 778,586 Minority interests (13,202) -------- Profit attributable to shareholders 765,384 ======== Secondary reporting format-business segments (i) For the nine months ended 31 December 2002: Contribution to Turnover operating profit (unaudited) (unaudited) HK$'000 HK$'000 Corporate IT business 8,711,700 599,606 Consumer IT business 5,297,473 260,609 Handheld device business 1,109,721 28,844 IT service business 119,869 (40,567) Contract Manufacturing business 728,875 15,301 Gains on disposal of subsidiaries and investment securities 6,287 Amortisation of Intangible assets (4,303) ---------- ---------- 15,967,638 865,777 ========== ========== (ii) For the nine months ended 31 December 2001: Contribution to Turnover operating profit (unaudited) (unaudited) HK$'000 HK$'000 Corporate IT business 8,019,734 480,092 Consumer IT business 5,594,095 194,660 Handheld device business 166,989 (15,325) Contract Manufacturing business 1,321,360 105,922 Others 1,624,391 (14,941) Gains on disposal of subsidiaries, associated companies and investment securities 57,986 ---------- ---------- 16,726,569 808,394 ========== ==========