RICHE M-MEDIA<00764> - Results Announcement
Riche Multi-Media Holdings Limited announced on 24/9/2004:
(stock code: 00764 )
Year end date: 31/12/2004
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 1/1/2004 from 1/1/2003
to 30/6/2004 to 30/6/2003
Note ('000 ) ('000 )
Turnover : 31,451 66,396
Profit/(Loss) from Operations : (13,046) 24,505
Finance cost : (169) (169)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (37,215) 24,336
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0783) 0.0512
-Diluted (in dollars) : (0.0783) 0.0487
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (37,215) 24,336
Interim Dividend : Nil Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. TURNOVER
2004 2003
HK$'000 HK$'000
Distribution of video programmes 19,672 40,774
Sub-licensing of programme rights 11,779 24,478
Sales of advertising rights - 1,144
______ ______
31,451 66,396
_______ _____
2. (LOSS) PROFIT FROM OPERATIONS
Six months ended
30.6.2004 30.6.2003
HK$'000 HK$'000
(Loss) profit from operations has been arrived at after
charging (crediting):
Amortisation of film rights (included in cost
of sales) 13,593 23,193
Amortisation of goodwill (included in
administrative expenses) 1,976 1,266
Amortisation of other asset (included
in administrative expenses) 3,323 3,322
Cost of inventories (included in cost of sales) 865 3,054
Depreciation and amortisation of
property, plant and
equipment:
- owned assets 678 613
- leased assets 6 6
684 619
Inventory written off (included in
cost of sales) - 484
Contributions to retirement benefits scheme 85 108
Salaries and other allowances 5,185 3,481
Total staff costs 5,270 3,589
Unrealised loss on disposal of investments
in securities 459 -
Interest income from bank deposits (15) (35)
Interest income from convertible notes (794) (794)
3. (LOSS) EARNINGS PER SHARE
The calculation of the basic and diluted (loss) earnings per share is
based on the following data:
Six months ended
30.6.2004 30.6.2003
HK$'000 HK$'000
(Loss) earnings
(Loss) earnings for the purposes of basic earnings
per share (net (loss) profit for the period) (37,215) 24,336
Effect of dilutive potential ordinary shares:
Interest on convertible notes - 168
Adjustment to interest on convertible notes
issued by an associate based on dilution of
their earnings per share - (794)
---------- ---------
(Loss) earnings for the purpose of diluted
earnings per share (37,215) 23,710
=========== ========
'000 '000
Number of shares
Weighted average number of ordinary shares
for the purpose of basic earnings per share 475,200 475,200
Effect of dilutive potential ordinary shares:
Share options - 3,324
Convertible notes - 8,450
-------- -------
Weighted average number of ordinary shares
for the purposes of diluted earnings per share 475,200 486,974
-------- --------
The computation of diluted loss per share for the period does not assume
the exercise of the Company's warrants, convertible notes payable and
share options because the effect of exercising a warrant, a convertible
note payable and an option to subscribe for an additional share in the
Company would result in a decrease of net loss per share.
The computation of diluted earnings per share for the period from 1st
January, 2003 to 30th June, 2003 did not assume the exercise of the
Company's warrants as the exercise price of these warrants was higher than
the average market price for shares.
4. INTERESTS IN ASSOCIATES
THE GROUP
30.6.2004 31.12.2003
HK$'000 HK$'000
Share of net assets in an associate (note (a)) 30,000 -
Convertible notes issued by an associate
(note (b)) 160,000 160,000
Less: Allowance for convertible notes issued by
an associate (24,000) -
_______ _______
166,000 160,000
Less: Convertible notes due within one year
shown under current assets (136,000) -
_______ _______
30,000 160,000
======= ========
Notes:
(a) During the period, the Group invested an aggregate amount of HK$30
million for a 40% equity interest in Rainbow Choice Enterprises Limited, a
company which principally engages in production, distribution, licensing
and sub-licensing of distribution rights relating to films, television
series, entertainment news and/or video features.
(b) The notes bear interest at 1% per annum, which is payable yearly
in arrears, and will mature on 17th April, 2005. Prior to the maturity,
only Gainful Fortune Limited ("Gainful"), an associate of the Group, has
the right to redeem early part or all of the amount of the convertible
notes. The convertible notes carry the right to convert the outstanding
principal amount of the notes into ordinary shares of HK$1 each in the
share capital of Gainful at a conversion price of HK$1 per share on the
maturity date. However, prior to the maturity, the Group may convert the
notes with the consent of Gainful.
As at 30 June 2004, the directors of the Company assessed the financial
position of Gainful. The directors of the Company considered that part of
convertible notes of HK$24,000,000 cannot be recovered in the future,
therefore, an allowance of HK$24,000,000 (six months ended 30 June 2003:
Nil) has been made in respect of the convertible note issued by Gainful in
the current period.
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