139 HOLDINGS<0139> - Results Announcement 139 Holdings Limited announced on 14/12/2000: (stock code: 139) Year end date: 31/3/2001 Currency: HKD (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2000 from 1/4/1999 to 30/9/2000 to 30/9/1999 ('000) ('000) Turnover : 86,512 71,961 Profit/(Loss) from Operations : (33,077) 384 Finance cost : (4,134) (3,523) Share of Profit/(Loss) of Associates : (80) - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : (37,291) (3,139) % Change over Last Period : N/A EPS/(LPS)-Basic : (0.75 cent) (0.24 cent) -Diluted : - - Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : (37,291) (3,139) Interim Dividend per Share : Nil Nil (Specify if with other options) : - - B/C Dates for Interim Dividend : - Payable Date : - B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : - B/C Dates for Other Distribution : - Remarks: (1) Certain comparative figures have been reclassified due to the adoption of the new SSAP. (2) Turnover An analysis of the Group's turnover and contribution to loss from operating activities by principal activities and geographical area of operation for the Period is as follows:- Contribution to profit/(loss) Turnover from operating activities ------------------ ------------------------------ For the six months For the six months ended 30 September ended 30 September ------------------ ------------------------------- 2000 1999 2000 1999 ------------------ ------------------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) HK$'000 HK$'000 HK$'000 HK$'000 By activities: Garment 65,636 65,435 8,793 345 Shoes 959 6,424 104 40 Leather Goods 543 102 61 (1) Car audio equipment 19,374 0 1,198 0 ------------------ ------------------------------- 86,512 71,961 10,156 384 ================== Unallocated corporate expenses (43,233) 0 ------------------------------- Profit/(Loss) from operating activities (33,077) 384 =============================== By geograhpical area: The People's Republic of China (the "PRC") and Hong Kong, SAR 63,616 71,961 8,886 384 Elsewhere 22,896 0 1,270 0 ------------------ -------------------- 86,512 71,961 10,156 384 ================== Unallocated corporate expenses (43,233) 0 -------------------- Profit/(Loss) from operating activities (33,077) 384 ==================== (3) Profit/(Loss) from operating activities The Group's profit/(loss) from operating activities if arrived after charging:- Profit/(loss) from operating activities --------------------------------------- For the six months ended 30 September --------------------------------------- 2000 1999 (Unaudited) (Unaudited) HK$'000 HK$'000 Cost of inventories sold 56,200 46,775 Depreciation: Owned fixed assets 3,981 2,242 Leased fixed assets 90 74 Interest expenses 4,134 3,523 Loss on disposal of other securities 21,407 0 Impairment loss on other securities 18,229 0 (4) Accounting Policies These consolidated interim financial statements have been audited by the Company's Auditors but have been reviewed by the Company's Audit Committee. The unaudited condensed consolidated interim statements are prepared in accordance with Hong Kong Statement of Standard Accounting Practice ("SSAP") No. 25. "Interim Fiancial Reporting, issued by the Hong Kong Society of Accountants and Appendix 16 of the Listing Rules of The Stock Exchange of Hong Kong Limited except that the comparative figures of the condensed consolidated cash flow statement have not been prepared as the Company has taken the advantages at the transitional provision set out in the Listing Rules of The Stock Exchange of Hong Kong Limited. The accounting policies and methods of computation of the interim financial statements are consistent with those used in the annual financial statements for the year ended 31 March 2000. In the prior interim period, the Group's accounting policy of accounting for deferred business development costs were capitalised and amortised over 5 years from the date of commencement of operations on a straight-line basis. This policy was changed after the said interim period. Business development costs are now recognised as expense in the period in which they were incurred. This change in accounting policy has been applied retrospectively resulting in a decrease in the Group's retained profit as at 1 April 1999 of HK$10.9 million and a decrease in the Group's loss for the six months ended 30 September 1999 of HK$2.8 million. Comparative information has been restated to reflect this change. (5) Taxation No provision for Hong Kong profit tax has been made during the period ended 30 September 2000 (1999: Nil) as the Group did not generate any assessable profits arising in or derived from Hong Kong during the said period. No provision for taxation in PRC has been made since no assessable profits have been generated by the subsidiary operating in the PRC. The other overseas subsidiaries did not generate any profits subject to foreign taxes during the said period. (6) Loss per share The calculation of basic loss per share is based on the net loss attributable to shareholders for the period of HK$37,291,000 (1999: HK$3,139,000 (as restated)) and the weighted average of 4,984,647,471 (1999: weighted average 1,301,514,025, adjusted to reflect the rights issue in March 2000) ordinary shares in issue during the Period. Diluted loss per share for the period ended 30 September 2000 and 1999 has not been shown as the share options outstanding during these periods had an anti-dilutive effect on the basic loss per share for these periods.