PACIFIC PLYWOOD<00767> - Results Announcement
Pacific Plywood Holdings Limited announced on 15/04/2004:
(stock code: 00767 )
Year end date: 31/12/2003
Currency: USD
Auditors' Report: Modified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/01/2003 from 01/01/2002
to 31/12/2003 to 31/12/2002
Note ('000 ) ('000 )
Turnover : 136,589 121,449
Profit/(Loss) from Operations : (3,868) 132
Finance cost : (3,965) (4,715)
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 : (8,156) (3,870)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0015) (0.0007)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (8,156) (3,870)
Final Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final 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. COMPARATIVE FIGURES
Certain of the 2002 comparative figures have been restated to conform to
current year presentation as a result of the retrospective adoption of
Statement of Standard Accounting Practice Number 12 issued by the Hong
Kong Society of Accountants.
2. LOSS PER SHARE
The calculation of basic loss per share was based on the consolidated loss
attributable to shareholders of approximately US$8,156,000 (2002 -
US$3,870,000) and on the weighted average number of 5,580,897,243 shares
(2002 - 5,580,897,243 shares) in issue during the year.
No diluted loss per share for the year ended 31st December, 2003 and 31st
December, 2002 are presented as the dilutive potential ordinary shares
were anti-dilutive.
3. DETAILS OF MODIFICATION TO AUDITORS' REPORT
The report of the auditors on the Group's accounts has been modified to
include the disclosures of a fundamental uncertainty. The auditors, in
forming their opinion, have considered the adequacy of the disclosures
made in the accounts concerning the adoption of the going concern basis on
which the accounts have been prepared. As explained in the "Basis of
Presentation" below, the Group is currently undertaking a number of
measures to relieve its current liquidity pressures and improve its
results of operations. The accounts have been prepared on a going concern
basis, the validity of which depends upon the successful rescheduling of
the repayment terms of certain long term bank loans, obtaining the ongoing
support from the Group's bankers and the ability to generate sufficient
cash flows from future operations to cover the Group's operating costs and
to meet its financing commitments. The accounts do not include any
adjustments that would result from the failure of such measures. Details
of the circumstances relating to this fundamental uncertainty are
described in the "Basis of Presentation" below. The auditors consider
that appropriate disclosures have been made in the accounts and their
opinion is not qualified in this respect.
4. BASIS OF PRESENTATION
As at 31st December, 2003, the Group had net current liabilities of
approximately US$14,178,000 (2002 - US$9,607,000) and outstanding bank
loans of approximately US$78,677,000 (2002 - US$80,061,000) of which
approximately US$24,067,000 (2002 - US$13,645,000) was due for repayment
within the next twelve months.
Subsequent to 31st December, 2003, the Group has successfully renewed
short-term bank loans of approximately US$11,913,000 for a further year to
1st quarter of 2005. In addition, subsequent to year end, the Group has
secured additional trade finance banking facilities amounting to
approximately US$1,316,000 (2002 - US$3,420,000).
In addition, the directors are currently in negotiation with one of the
Group's principal bankers for a rescheduling of the repayment terms of
certain long term bank loans granted to one of the Group companies
amounting to approximately US$59,211,000. As at the date of approval of
the accounts, the Group has obtained in-principal approval from the bank
to reschedule the loans repayments of the aforementioned bank loans
("rescheduling arrangement"). Under the rescheduling arrangement, the
aforementioned bank loan would become repayable by installments from 2004
to 2015. As a result, the principal of the long-term bank loans to be
repaid in the next twelve from 31st December, 2003 would have been reduced
from approximately US$11,418,000 to US$3,174,000. The final legal
documentation and other detailed terms of the rescheduling arrangement are
yet to be finalised. Save as the above, the directors of the Group are of
the opinion that there will be no material changes to the terms and
conditions of the reschedule loan compared to those currently in force.
In the opinion of the directors, these measures, in addition to the
Group's continuing efforts to minimise capital expenditures, rationalise
costs and expand its markets, have improved and will continue to improve
the Group's working capital and debt maturity profile and therefore the
directors are satisfied that the Group will be able to meet in full its
financial obligations as they fall due for the twelve months from the
balance sheet date. Accordingly, assuming the legal documents relating to
the rescheduling arrangement are completed as anticipated and assuming the
performance of the business is in line with the directors' expectations,
the directors are satisfied that it is appropriate to prepare the accounts
on a going concern basis. The accounts do not include any adjustments
relating to the carrying amount and reclassification of assets and
liabilities that might be necessary should the Group be unable to continue
as a going concern.
|