SOUTH EAST GP<0726> - Results Announcement
South East Group Limited announced on 23/12/1999:
(stock code: 726)
Year end date: 31/3/2000
Currency: HK$ (Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/4/1999 from 1/4/1998
to 30/9/1999 to 30/9/1998
('000) ('000)
Turnover
- Continuing : 41,492 23,138
- Discontinued : - -
Operating Profit/(Loss)
- Continuing : 45,286 (8,409)
- Discontinued : - -
Total Operating Profit/(Loss) : 45,286 (8,409)
Share of Profit/(Loss) of
Associated Companies : - -
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : 44,886 (8,409)
% Change over Last Period : N/A
EPS/(LPS)-Basic : 1.36 cents (0.25 cent)
-Diluted : - -
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : 44,886 (8,409)
Interim Dividend per Share : Nil Nil
(Specify if with other options) : - -
B/C Dates for Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
(1) Basis of preparation
In preparing the interim results, the directors have given careful
consideration of the impact on the Company's operation and financial
position as a result of its wholly owned subsidiary, Benelux Manufacturing
Limited (the "Subsidiary") was put in liquidation.
Provisional liquidators were appointed under an order of the
High Court on 25 August 1999, and a winding up order was made against
the Subsidiary at the first hearing of the winding up petition
on 10 November 1999, which significantly impair control by the Company
over the Subsidiary together with its immediate subsidiaries (the
"Subsidiaries") assets and operations thereafter.
In the directors' opinion, the consolidation of the Subsidiaries would
involve expenses and delay out of proportion to the value to the members,
thus the Subsidiaries, as listed below, are excluded from consolidation:
Place of Effective Principal
incorporation equity interest activity
Benelux Manufacturing Hong Kong 100% In liquidation
Limited
Prime Standard Limited Hong Kong 90% Dormant
PT Beneluxindo Indonesia 100% Ceased
operation
Benelux Manufacturing Northern Ireland 100% Dissolved
(N.I.) Limited
For the Subsidiaries as mentioned above, the directors are also of the
view that it would involve cost and delay out of proportion to the
value to the members of the Company to make disclosure in accordance
with paragraph 18(4) of the Tenth Schedule to the Companies Ordinance. As
a matter of fact that all books and records of the Subsidiary have been in
the hands of the provisional liquidators.
Investments in the Subsidiaries are therefore stated at cost and full
provision for permanent diminution in value was made as, in the opinion of
the directors, the investments have no real value to the Group.
(2) Surplus on deconsolidation
This arises from the deconsolidation of the Subsidiaries as disclosed in
Note (1) above, and it comprises:
1999 1998
HK$'000 HK$'000
Gain on deconsolidation of the Subsidiaries 77,101(a) -
Provision for obligation to creditors of
the Subsidiaries (1,005) -
Provisions for costs of liquidation, legal and
professional expenses (30,000) -
Provision for loss on deconsolidation of the (7,705) -
Subsidiaries
Write back of provision for fixed assets 3,680(b) -
------------- ---
42,071 -
======= ===
(a) Summary of the effect on deconsolidation of the Subsidiaries
1999
HK$'000
Net liabilities deconsolidated comprises:
Fixed assets 1,399
Investments in subsidiaries
Unlisted shares, at costs 155,991
Less: Provision for permanent diminution
in value (155,991)
---------
-
Other investment 14,597
Cash and bank balances 137
Net current liabilities excluding cash and bank
balances (93,234)
----------
Gain on deconsolidation of the Subsidiaries (77,101)
========
(b) In September 1996, the Group discontinued the operations of Benelux
Manufacturing (N.I.) Limited ("BMNI") in Northern Ireland. Fixed assets
and stocks were written down to their estimated recoverable amounts as
reported in the years 1996 and 1997 audited financial statements.
BMNI was put into members voluntary liquidation on 13 April 1999, and was
dissolved in August 1999. The write back represents the excess of
provisions made against the net recoverable amount of the relevant plant
and machinery which were written down in the years 1996 and 1997.
(3) Earnings/(Loss) per share
The calculation of earnings per share is based on the unaudited
consolidated profit attributable to shareholders of HK$44,886,000
(1998: loss of HK$8,409,000) and 3,305,718,800 shares (1998:
3,305,718,800) in issue during the period.
|
