LAI SUN DEV<00488> - Results Announcement (Summary)
Lai Sun Development Company Limited announced on 8/11/2002:
(stock code: 488)
Year end date: 31/7/2002
Currency: HK$
Auditors' Report: Qualified
Review of Interim Report by: N/A
(Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/8/2001 from 1/8/2000
to 31/7/2002 to 31/7/2001
Turnover : 934,720,000 1,899,862,000
Profit/(Loss) from Operations : 10,621,000 (267,910,000)
Finance cost : (567,748,000) (638,483,000)
Share of Profit/(Loss) of Associates : (1,324,063,000) (249,129,000)
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : (1,941,508,000) (1,196,182,000)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (0.52) (0.32)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : (1,941,508,000) (1,196,182,000)
Final Dividend per Share : NIL NIL
(Specify if with other options) : N/A N/A
B/C Dates for Final 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 COMPARATIVE AMOUNTS
Due to the adoption of certain new and revised SSAPs and Interpretations
during the current year, the accounting treatment and presentation of
certain items and balances in the financial statements have been revised
to comply with the new requirements. Accordingly, a prior year adjustment
has been made and certain comparative amounts have been reclassified to
conform with the current year's presentation.
2 BASIS OF PRESENTATION
The Group sustained a net loss from ordinary activities attributable to
shareholders of HK$1,942 million for the year ended 31st July, 2002 (2001:
HK$1,196 million). The loss principally arose from non-recurring
transactions in respect of the disposals of certain subsidiaries and
associates, and was compounded by impairment provisions in respect of its
interests in certain properties under development, unlisted investments,
associates and goodwill related thereto.
At the balance sheet date, the Group had consolidated net current
liabilities of HK$6,193 million (2001: HK$957 million) and consolidated
net assets of HK$766 million (2001: HK$3,866 million).
Included in such net current liabilities were the outstanding balance of
the US$115 million exchangeable bonds (the "Exchangeable Bonds") of HK$740
million, the outstanding balance of the US$150 million convertible
guaranteed bonds (the "Convertible Bonds") of HK$965 million, the debt of
HK$1,500 million (the "Debt") owed by the Group to Golden Pool Enterprises
Limited ("GPEL"), a wholly-owned subsidiary of eSun Holdings Limited
("eSun"), which in turn is an associate of the Group and bank and other
borrowings of HK$2,445 million, all of which are scheduled to mature
within the next 12 months from the balance sheet date.
Over the past two years, the Group has successfully monitored an orderly
disposal of assets, including properties and other investments, to
generate positive cash flows for the repayment of bank and other
borrowings and to provide sufficient working capital for the Group's
operations. The Group will continue to implement appropriate asset
disposal programmes to further reduce its overall level of indebtedness.
During the year, the Group has been working closely with its legal and
financial advisors in formulating a plan for the repayment and/or
refinancing of its outstanding indebtedness. Recently, the Group
initiated discussions with the Exchangeable Bondholders, Convertible
Bondholders and eSun to explore the terms of a new debt restructuring plan
(the "New Restructuring Plan"). The Group has also initiated negotiations
with its principal banks with a view to arranging a rescheduling and/or
refinancing of its bank borrowings (the "Refinancing Arrangements"). As
of the date of approval of these financial statements, no fixed terms or
binding agreements in respect of the New Restructuring Plan or the
Refinancing Arrangements had been agreed upon or executed.
The directors of the Company believe that the Group will be able to
secure the agreement of the Exchangeable Bondholders, Convertible
Bondholders, eSun and the banks to the New Restructuring Plan and the
Refinancing Arrangements and, at the same time, continue the successful
orderly disposal of the necessary Group assets to generate additional
positive cash flows. On this basis, the directors consider that the Group
will have sufficient working capital to finance its operations in the
foreseeable future. Accordingly, the directors of the Company are
satisfied that it is appropriate to prepare the financial statements on a
going concern basis.
If the going concern basis is not appropriate, adjustments would have to
be made to restate the values of the assets to their recoverable amounts,
to provide for any further liabilities which might arise and to reclassify
non-current assets and liabilities as current assets and liabilities,
respectively.
3 SHARE OF PROFIT/(LOSS) OF ASSOCIATES
2002 2001
HK$ HK$
Share of profits and losses of associates (232,507,000) (174,549,000)
Amortisation of goodwill on acquisition
of associates (6,636,000) (578,000)
Impairment in value of goodwill of an
associate (228,258,000) -
Impairment in value of associates (318,000,000) (74,002,000)
Loss on disposal of associates (538,662,000) -
------------ ----------
(1,324,063,000)(249,129,000)
============== ============
4 LOSS PER SHARE
The calculation of basic loss per share is based on the net loss from
ordinary activities attributable to shareholders for the year of
HK$1,941,508,000 (2001:HK$1,196,182,000) and the weighted average number
of 3,746,002,000 (2001: 3,746,002,000) ordinary shares in issue during the
year.
Diluted loss per share amounts for the years ended 31st July, 2002 and
2001 have not been disclosed, as the potential ordinary shares of the
Group outstanding during these years had an anti-dilutive effect on the
basic loss per share for these years.
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