We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Establishment Investment Trust Plc | LSE:ETC | London | Ordinary Share | GB00BKC5RP65 | ORD 25P C RIGHTS |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 103.50 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
Hot Features
Premium
TIDMETC
RNS Number : 4582T
Et-china.com International Holdings
05 June 2009
+-----------------------------------------+-----------------------------------------+
| For immediate release | 5 June 2009 |
+-----------------------------------------+-----------------------------------------+
ET-CHINA.COM INTERNATIONAL HOLDINGS LIMITED
("Et-china", "the Group" or "the Company")
Unaudited preliminary results for the year ended 31 December 2008
Et-china, a leading travel services group in the fast growing region of South
China, announces its preliminary results for the year ended 31 December 2008.
Highlights:
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| | Reported RMB | Reported GBP* | Y2007 | Y2007 |
| | | |Pro-Forma** | Pro-Forma |
| | | | | |
+-------------------+------------------------------+-----------------------------------+-------------+-------------+
| | 31 | 31 | 31 | 31 | RMB | Reported |
| | December | December | December | December | (Unaudited) | GBP |
| | 2008(Unaudited) | 2007 | 2008(Unaudited) | 2007(Unaudited) | | (Unaudited) |
| | | (Audited) | | | | |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| Revenue | 1,740.6m | 1,291.6m | 142.3m | 86.5m | 1,693.0m | 113.4m |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| Gross Profit | 184.6m | 114.6m | 15.1m | 7.7m | 156.7m | 10.5m |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| Result from | (49.7m) | (78.3m) | (4.1m) | (5.2m) | (76.3m) | (5.1m) |
| operations | | | | | | |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| Net Loss**** | (81.8m) | (50.4 m) | (6.9m) | (3.4m) | (49.2m) | (3.2m) |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
| Of which: Net | (41.3m) | 34.6m | (3.4m) | 2.3m | 35.9m | 2.4 m |
| finance | | | | | | |
| (costs)/income*** | | | | | | |
+-------------------+-----------------+------------+-----------------+-----------------+-------------+-------------+
* Figures in GBP are for illustrative purposes only, the figures are translated
using RMB: GBP 12.2303 to 1 (2008) and 14.9309 to 1 (2007) respectively. For the
reason that the exchange rate of RMB to GBP fluctuated sharply during 2008 and
2007, investors are recommended to refer to the reported RMB figures for
comparisons, or it may distort the company's performance when only relying on
the reported GBP numbers.
** Pro-forma figures are for illustrative purposes only. They include the full
year results of GZL rather than from the date of its acquisition on 26 April
2007. No adjustments have been made to any acquisition accounting entries. The
pro-forma figures are un-audited.
*** Due to the fair value adjustment during the year on the Grandbuy shares held
by GZL of some negative RMB 38.7 million, the net finance costs were RMB 41.3
million in 2008.
**** Net loss for 2008 was RMB 81.8 million, of which ETCI accounted for RMB
72.0 million and the minority interest of GZL approximately RMB 9.8 million.
Operating Summary
* GZL, ETC's package holiday division, achieved net revenues of RMB 1,683.5
million for the year ended 31 December, an increase of approximately 3% over
2007
* Et-china, serving the Frequent Independent Travel market, achieved net revenue
of RMB 57.1 million (2007: RMB 65.2 million), including the 49% revenue share of
its e-ticketing JV of RMB 15.3 million
* e-ticketing JV net revenue increased to RMB 31.2 million (2007: RMB 26.7
million)
Financial Summary
* Net finance costs impacted by a loss of RMB 38.7 million on the decrease of the
fair value of GrandBuy shares held by GZL during 2008. The related deferred tax
liabilities amounted to RMB 9.7 million had been reversed and credited to the
income statement
* Additional depreciation and amortization arose on acquisition of GZL amounting
to RMB 3.4 million
* The changes in fair value conversion of convertible loan notes contributed RMB
16.5 million profit to the net results
* The interest expenses on convertible loan notes was RMB 7.2 million
* Balance sheet strengthened; cash and cash equivalents at the end of 2008 was RMB
185.4 million (GBP18.9 million)
* On 31 December 2008, GZL signed a standby credit facility of RMB 2 billion with
China Construction Bank. The business expansion and future integration of GZL
Group was strongly supported by the local government
Successful GBP 5.5 million fundraising from Och-Ziff, Ellerston and LFG in May
2008.
The Group will publish and send to shareholders its 2008 Annual Report,
including audited financial statements for the year ended 31 December 2008,
by 30 June 2009.
Contact details for enquiries:
+-------------------------------------+------------------------------------+
| Et-china.com International Holdings | 0207 067 0700 |
| Limited | |
+-------------------------------------+------------------------------------+
| Matthew Ng, Chief Executive Officer | |
+-------------------------------------+------------------------------------+
| | |
+-------------------------------------+------------------------------------+
| Seymour Pierce, Nomad and Broker | 0207 107 8000 |
+-------------------------------------+------------------------------------+
| Mark Percy | |
+-------------------------------------+------------------------------------+
| Catherine Lefley | |
+-------------------------------------+------------------------------------+
| | |
+-------------------------------------+------------------------------------+
| Weber Shandwick Financial | 0207 067 0700 |
+-------------------------------------+------------------------------------+
| Terry Garrett | |
+-------------------------------------+------------------------------------+
| Stephanie Badjonat | |
+-------------------------------------+------------------------------------+
| John Moriarty | |
+-------------------------------------+------------------------------------+
Interim Chairman and CEO Statement
I am pleased to announce the Group's second full year results as a public
company. It has been a challenging year for the Company in terms of
the operating environment but the Group has adapted well to adverse external
conditions and has made significant progress at both of its operating divisions.
We have emerged from the year as the travel services market leader in South
China in terms of revenue.
Results
The Group delivered a strong trading performance in 2008 despite a number of
extremely challenging external events such as the snow storm in South China in
February, Tibet unrest in March, the May 12 earthquake in Sichuan, the visa
restriction of Beijing Olympics and the deteriorating global economic
environment in the last quarter of 2008.
Overall, Group revenue for 2008 reached RMB 1,740.6 million with a gross profit
of RMB 184.6 million. As the Group only accounted for 8 months of its tour
operator subsidiary, GZL, in its reported 2007 figures, the management
believes a more meaningful comparison is to adjust the 2007 figures on a
pro-forma basis. The adjusted figures demonstrate that although the Group
achieved only a 3% revenue improvement due to the reasons noted above, gross
profits increased by 18% reflecting a higher gross profit margin of 10.61%
compared to 9.25% in 2007. The overall operating loss has been reduced from
RMB 76.3 million in 2007 to RMB 49.7 million, a reduction of 35%. While the
reported loss after income tax for the period was RMB 81.8 million, this was
significantly adversely affected by financing costs which are mainly due to an
accounting 'market value' provision against GZL's shareholding in a local
department store, Grandbuy, which is listed on the Shenzhen Stock Exchange. It
is worth highlighting that given we have not disposed of any Grandbuy shares
since the year end, there has been an appreciation in those shares by some RMB
13 million as at the end of May 2009.
GZL, which is the one of the largest travel package providers in South China
through over 160 shops and a 24x7 call centre, served approximately 1.67 million
travellers in 2008. It generated net revenue of RMB 1,683.5 million and a gross
profit of RMB 165.4 million, representing an increase of 3% and 16% respectively
over last year. Its operating profit has increased by 67 times to RMB 9.8
million over 2007. Net profit for the year (before the fair value adjustment for
the Grandbuy shares as noted above) has increased to RMB 13.7 million from
RMB 0.1 million in 2007. It is a remarkable performance by GZL, given its
business was seriously affected by adverse weather and changes to the political
and economic environment during the year under review. The split of travel
destinations remained broadly similar to that of 2007, being approximately 50%
outbound with the balance represented by domestic and inbound although there was
a reduction in the inbound segment which is now below 5% of overall revenue. The
reduction of inbound is a direct consequence of the visa restrictions and the
subsequent global financial turmoil in 2008.
The Et-china Limited subsidiary, which is the Group's primary FIT (frequent
independent traveler) and corporate traveler business, saw its revenue decrease
by 19% to RMB 43 million but its gross profit increased by 30% to RMB 9.4
million.After taking into account overheads from the holding company and listing
costs, the loss after tax for the period was RMB 59.5 million, which is a 17%
improvement on the loss 2007 of RMB 71.6 million.
The e-JV with China Southern Airlines, achieved a 11% increase in net revenues
to RMB 31.2 million and 37% increase in gross profit to RMB 20 million. It has
made a net profit of RMB 1.7 million, an increase of 22% over 2007. The result
of the e-JV has been proportionately consolidated into the Group's consolidated
financial statements by 49%.
At the end of 2008, the combined cash and cash equivalent in the Group was RMB
185.4 million (2007: RMB 187.6 million).
Key Events
The Group raised GBP5.5 million by way of issuance of convertible bonds in May
2008 to two new investors; Och-Ziff and Ellerston, as well as LFG, an existing
shareholder. The fund raising provided capital for the Company's FIT business
which needed to invest in working and marketing capital in order to expand.
Subsequent to the capital raising, the Group forged marketing partnerships with
ICBC bank, one of the biggest commercial banks in the world, and Netease.com, a
leading Internet portal in China to expand further its online FIT business.
Subsequent to the year end, on 17 March 2009 the Group acquired the shares and
assets of Beijing Yoee.com Travel Limited ("Yoee.com"). The Group acquired all
trademarks, URL, all tangible and intangible assets, all business operations and
staff of Yoee.com for a consideration of RMB 5 million in cash and GBP2.1
million equivalent through the issue of new ordinary shares at 80p per share.
About 30% of the shares to be issued are subject to the management team from
Yoee.com meeting a clearly defined financial performance benchmark in 2009.
Although the acquisition was not agreed until March 2009, the Group had
effectively exercised control of the Yoee.com business since 1 January 2009
while negotiations were being concluded. The management teams from both
companies have worked hard during the first quarter of 2009 to integrate and
streamline the combined operation.
It is fair to say that integrating the two businesses had been successfully
completed by 31 March 2009 in terms of suppliers, a common technology platform,
product design, customer service and finance. Moreover, the combined FIT
operation has achieved a reduction in its headcount of almost 50% since the
merger without any negative impact on net revenue and gross profit in the first
few months of the current financial year.
The FIT online business is now operated under the unified brand name and, with a
more efficient operating platform, the business is expected to continue growing
in 2009.
On 3 June 2009 we announced that Kuoni Travel Holding Limited ("Kuoni"), one of
the largest global leisure travel companies, had acquired a 31.8% stake in the
Company from an existing shareholder, Gandhara Master Fund Limited. We believe
that with Kuoni as a significant shareholder, it will give us an opportunity to
create a strategic alliance with an established global tour operator with growth
opportunities in our respective inbound and outbound businesses.
Outlook
The Chinese economy has been experiencing a structural change over the last 12
months or so, shifting from an export-driven and investment oriented focused
economy to a domestic consumption and investment oriented economy coupled with
less reliance on exports. The government has tried hard to stimulate domestic
consumption in the face of the global economic crisis by releasing a RMB 4
trillion stimulus package late last year. Moreover, the financial institutions
have collectively increased lending and have injected considerable amounts of
the much needed liquidity in the Chinese economy in a bid to lessen the impact
of the financial crisis.
We believe the global financial crisis will inevitably have some negative impact
on the overall economy and the tourism industry in China in 2009; however there
will also be tremendous opportunities available to the Group due to the
following factors:
1. The Chinese government at all levels have made stimulating travel activity a key
priority, with a number of large-scale infrastructure projects started and
recent wide distribution of discount coupons to the travelling public;
2. The government is pushing for 2009 to be the year of national leisure holiday,
which aims to encourage employers to give holidays and employees to take
vacations and travel. The scheme offers financial incentives to companies which
comply and penalties for those who fail;
3. There will be knock-on effects from the 2008 Olympics for both domestic and
inbound travel, as well as a number of key events in the next 12 to 18 months
including the 60th anniversary of the founding of the People's Republic of China
in October this year, the Shanghai WorldExpo in 2010 as well as the Asian Games
in Guangzhou in 2010;
4. The government is offering financial support and incentives to leading local
travel companies. The Group's tour operator subsidiary, GZL, is a direct
beneficiary of the programme - we have signed a standby credit facility of RMB 2
billion with China Construction Bank Guangdong Branch.
Management is totally focused on the continued expansion of the business and
consolidation of the Group's leading position in South China while looking at
opportunities across the whole of China to expand its service and distribution
capabilities. We believe in seizing opportunities in a challenging environment.
In the first quarter 2009, we have seen our revenue increasing by about 15% and
our gross profit up by 24%.
With the global financial crisis stabilising in Q2 2009, the Board can look
forward to a better business environment with an increasing degree of
confidence.
Matthew Ng
CEO, President and Interim Chairman
5 June 2009
Consolidated income statement
for the year ended 31 December 2008
(un-audited)
+-----------------------------------------+-----+-------------+----------+-------------+
| | | 2008 | | 2007 |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | RMB'000 | | RMB'000 |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Revenue | | 1,740,589 | | 1,291,601 |
+-----------------------------------------+-----+-------------+----------+-------------+
| Direct operating costs | | (1,555,981) | | (1,177,025) |
+-----------------------------------------+-----+-------------+----------+-------------+
| Gross profit | | 184,608 | | 114,576 |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Net other operating income | | 772 | | 1,510 |
+-----------------------------------------+-----+-------------+----------+-------------+
| Selling, general and administrative | | (251,632) | | (194,429) |
| expenses | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Net change in fair value of conversion | | 16,511 | | - |
| option of convertible loan notes | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Result from operating activities | | (49,741) | | (78,343) |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Finance income | | 9,635 | | 39,424 |
+-----------------------------------------+-----+-------------+----------+-------------+
| Finance expense | | (50,932) | | (4,783) |
+-----------------------------------------+-----+-------------+----------+-------------+
| Net finance (expense) / income | | (41,297) | | 34,641 |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Share of (loss) / profit of associates, | | (78) | | 403 |
| net of income tax expense | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Loss before income tax expense | | (91,116) | | (43,299) |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Income tax credit / (expense) | | 9,319 | | (7,085) |
+-----------------------------------------+-----+-------------+----------+-------------+
| Loss for the year | | (81,797) | | (50,384) |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Attributable to: | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Equity holders of the Company | | (72,049) | | (61,542) |
+-----------------------------------------+-----+-------------+----------+-------------+
| Minority interests | | (9,748) | | 11,158 |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Loss per share | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
| Basic and diluted loss per share | | 218.6 cents | | 255.0 cents |
+-----------------------------------------+-----+-------------+----------+-------------+
| | | | | |
+-----------------------------------------+-----+-------------+----------+-------------+
Consolidated balance sheet at 31 December 2008
(un-audited)
+--------------------------------------------+---------------+--+-------------+
| | 2008 | | 2007 |
+--------------------------------------------+---------------+--+-------------+
| | RMB'000 | | RMB'000 |
+--------------------------------------------+---------------+--+-------------+
| Assets | | | |
+--------------------------------------------+---------------+--+-------------+
| Property, plant and equipment | 54,720 | | 62,304 |
+--------------------------------------------+---------------+--+-------------+
| Intangible assets | 47,067 | | 41,432 |
+--------------------------------------------+---------------+--+-------------+
| Investment properties | 11,175 | | 12,376 |
+--------------------------------------------+---------------+--+-------------+
| Investment in associates | 5,140 | | 5,218 |
+--------------------------------------------+---------------+--+-------------+
| Other investment | 37,108 | | 82,500 |
+--------------------------------------------+---------------+--+-------------+
| Lease prepayments | 28,413 | | 29,215 |
+--------------------------------------------+---------------+--+-------------+
| Total non-current assets | 183,623 | | 233,045 |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Inventories | 19,610 | | 20,877 |
+--------------------------------------------+---------------+--+-------------+
| Trade receivables | 77,756 | | 75,074 |
+--------------------------------------------+---------------+--+-------------+
| Deposits, prepayments and other | 104,817 | | 88,699 |
| receivables | | | |
+--------------------------------------------+---------------+--+-------------+
| Fair value of foreign exchange forward | 3,086 | | 561 |
| contracts | | | |
+--------------------------------------------+---------------+--+-------------+
| Tax recoverable | 1,371 | | 2,258 |
+--------------------------------------------+---------------+--+-------------+
| Amount due from a director | 553 | | 701 |
+--------------------------------------------+---------------+--+-------------+
| Pledged deposits | 126,633 | | 63,936 |
+--------------------------------------------+---------------+--+-------------+
| Cash and cash equivalents | 185,352 | | 187,642 |
+--------------------------------------------+---------------+--+-------------+
| Total current assets | 519,178 | | 439,748 |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Total assets | 702,801 | | 672,793 |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
Consolidated balance sheet at 31 December 2008 (continued)
(un-audited)
+------------------------------------------+---------------+--+-------------+
| | 2008 | | 2007 |
+------------------------------------------+---------------+--+-------------+
| | RMB'000 | | RMB'000 |
+------------------------------------------+---------------+--+-------------+
| Equity | | | |
+------------------------------------------+---------------+--+-------------+
| Share capital | - | | - |
+------------------------------------------+---------------+--+-------------+
| Share premium | 192,508 | | 192,508 |
+------------------------------------------+---------------+--+-------------+
| Other reserves | 147,721 | | 109,444 |
+------------------------------------------+---------------+--+-------------+
| Accumulated losses | (239,633) | | (166,481) |
+------------------------------------------+---------------+--+-------------+
| Total equity attributable to equity | 100,596 | | 135,471 |
| holders of the Company | | | |
+------------------------------------------+---------------+--+-------------+
| Minority interests | 65,122 | | 81,444 |
+------------------------------------------+---------------+--+-------------+
| Total equity | 165,718 | | 216,915 |
+------------------------------------------+---------------+--+-------------+
| | | | |
+------------------------------------------+---------------+--+-------------+
| Liabilities | | | |
+------------------------------------------+---------------+--+-------------+
| Deferred income | 1,070 | | 1,070 |
+------------------------------------------+---------------+--+-------------+
| Deferred tax liabilities | 19,604 | | 30,665 |
+------------------------------------------+---------------+--+-------------+
| Loans and borrowings | 39,064 | | - |
+------------------------------------------+---------------+--+-------------+
| Total non-current liabilities | 59,738 | | 31,735 |
+------------------------------------------+---------------+--+-------------+
| | | | |
+------------------------------------------+---------------+--+-------------+
| Trade payables | 84,078 | | 116,462 |
+------------------------------------------+---------------+--+-------------+
| Accrued expenses and other payables | 259,986 | | 236,723 |
+------------------------------------------+---------------+--+-------------+
| Fair value of foreign exchange forward | 1,509 | | 1,334 |
| contracts | | | |
+------------------------------------------+---------------+--+-------------+
| Fair value of conversion option of | 5,236 | | - |
| convertible loan notes | | | |
+------------------------------------------+---------------+--+-------------+
| Amounts due to directors | 624 | | 4,075 |
+------------------------------------------+---------------+--+-------------+
| Loans and borrowings | 125,912 | | 65,549 |
+------------------------------------------+---------------+--+-------------+
| Total current liabilities | 477,345 | | 424,143 |
+------------------------------------------+---------------+--+-------------+
| | | | |
+------------------------------------------+---------------+--+-------------+
| Total liabilities | 537,083 | | 455,878 |
+------------------------------------------+---------------+--+-------------+
| | | | |
+------------------------------------------+---------------+--+-------------+
| Total equity and liabilities | 702,801 | | 672,793 |
+------------------------------------------+---------------+--+-------------+
| | | | |
+------------------------------------------+---------------+--+-------------+
Consolidated cash flow statement
for the year ended 31 December 2008
(un-audited)
+--------------------------------------------+---------------+--+-------------+
| | 2008 | | 2007 |
+--------------------------------------------+---------------+--+-------------+
| | RMB'000 | | RMB'000 |
+--------------------------------------------+---------------+--+-------------+
| Cash flows from operating activities | | | |
+--------------------------------------------+---------------+--+-------------+
| Net loss for the year | (81,797) | | (50,384) |
+--------------------------------------------+---------------+--+-------------+
| Adjustments for: | | | |
+--------------------------------------------+---------------+--+-------------+
| Amortisation on intangible assets | 1,343 | | 1,073 |
+--------------------------------------------+---------------+--+-------------+
| Depreciation of property, plant and | 11,525 | | 7,016 |
| equipment | | | |
+--------------------------------------------+---------------+--+-------------+
| Depreciation of investment properties | 1,201 | | 1,584 |
+--------------------------------------------+---------------+--+-------------+
| Amortisation on lease prepayments | 802 | | 528 |
+--------------------------------------------+---------------+--+-------------+
| Loss on disposals of | 14 | | 134 |
| property, plant and | | | |
| equipment | | | |
+--------------------------------------------+---------------+--+-------------+
| Loss on disposal of other investment | 3,213 | | - |
+--------------------------------------------+---------------+--+-------------+
| Provision / (reversal) for impairment of | (916) | | 353 |
| trade and other receivables | | | |
+--------------------------------------------+---------------+--+-------------+
| Dividend income | (720) | | (672) |
+--------------------------------------------+---------------+--+-------------+
| Investment income | (1,223) | | (2,300) |
+--------------------------------------------+---------------+--+-------------+
| Share of profit / (loss) of associates | 78 | | (403) |
+--------------------------------------------+---------------+--+-------------+
| Interest income | (5,197) | | (1,278) |
+--------------------------------------------+---------------+--+-------------+
| Interest expense | 10,599 | | 2,990 |
+--------------------------------------------+---------------+--+-------------+
| Income tax expense | (9,319) | | 7,085 |
+--------------------------------------------+---------------+--+-------------+
| Foreign exchange loss | 3,153 | | 5,529 |
+--------------------------------------------+---------------+--+-------------+
| Share-based payment | 5,416 | | 6,438 |
+--------------------------------------------+---------------+--+-------------+
| Fair value change on other investment | 38,730 | | (34,048) |
+--------------------------------------------+---------------+--+-------------+
| Fair value change of conversion option | (16,511) | | - |
+--------------------------------------------+---------------+--+-------------+
| Change in fair value of foreign exchange | (2,495) | | 773 |
| forward contracts | | | |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Operating loss before working capital | (42,104) | | (55,582) |
| changes | | | |
+--------------------------------------------+---------------+--+-------------+
| Movements in working capital elements: | | | |
+--------------------------------------------+---------------+--+-------------+
| Change in inventories | 1,267 | | 2,279 |
+--------------------------------------------+---------------+--+-------------+
| Change in trade receivables | (1,242) | | (21,873) |
+--------------------------------------------+---------------+--+-------------+
| Change in deposits, prepayments and other | (16,874) | | 11,257 |
| receivables | | | |
+--------------------------------------------+---------------+--+-------------+
| Change in amount due from / to directors | (594) | | 3,748 |
+--------------------------------------------+---------------+--+-------------+
| Change in trade payables | (32,384) | | 57,581 |
+--------------------------------------------+---------------+--+-------------+
| Change in accrued expenses and other | 23,263 | | 16,354 |
| payables | | | |
+--------------------------------------------+---------------+--+-------------+
| Income tax paid | (855) | | (2,690) |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Net cash (used in) / | (69,523) | | 11,074 |
| generated from | | | |
| operating activities | | | |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
Consolidated cash flow statement
for the year ended 31 December 2008 (continued)
(un-audited)
+--------------------------------------------+---------------+--+-------------+
| | 2008 | | 2007 |
+--------------------------------------------+---------------+--+-------------+
| | RMB'000 | | RMB'000 |
+--------------------------------------------+---------------+--+-------------+
| Cash flows from investing activities | | | |
+--------------------------------------------+---------------+--+-------------+
| Acquisition of property, plant and | (4,078) | | (12,497) |
| equipment | | | |
+--------------------------------------------+---------------+--+-------------+
| Acquisition of associates | - | | (4,000) |
+--------------------------------------------+---------------+--+-------------+
| Acquisition of a subsidiary, net of cash | - | | 61,863 |
| acquired | | | |
+--------------------------------------------+---------------+--+-------------+
| Acquisition of intangible assets | (442) | | (380) |
+--------------------------------------------+---------------+--+-------------+
| Acquisition of minority interest | (3,057) | | - |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from sale of investment | 4,672 | | 2,300 |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from sale of properties, plant | 168 | | 411 |
| and equipment | | | |
+--------------------------------------------+---------------+--+-------------+
| Interest received | 4,111 | | 1,278 |
+--------------------------------------------+---------------+--+-------------+
| Contribution from minority interest | 180 | | - |
+--------------------------------------------+---------------+--+-------------+
| Dividend received from other investment | 720 | | 672 |
+--------------------------------------------+---------------+--+-------------+
| Payment for pledged deposits | (62,697) | | (63,936) |
+--------------------------------------------+---------------+--+-------------+
| Net cash used in investing activities | (60,423) | | (14,289) |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Cash flows from financing activities | | | |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from issue of | 70,491 | | 50,255 |
| convertible loan notes, | | | |
| net of transaction costs | | | |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from issue of shares | - | | 57,886 |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from exercise of warrants | - | | 1,801 |
+--------------------------------------------+---------------+--+-------------+
| Proceeds from bank borrowings | 60,363 | | 57,682 |
+--------------------------------------------+---------------+--+-------------+
| Repayment of shareholder's loan | - | | (5,565) |
+--------------------------------------------+---------------+--+-------------+
| Interest paid | (2,098) | | (2,990) |
+--------------------------------------------+---------------+--+-------------+
| Dividend paid to minority interests | (1,100) | | (2,500) |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Net cash generated from financing | 127,656 | | 156,569 |
| activities | | | |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Effect of foreign exchange | - | | (1,598) |
| rate changes | | | |
| on cash and cash equivalents | | | |
+--------------------------------------------+---------------+--+-------------+
| Net (decrease) / increase in cash and cash | (2,290) | | 151,756 |
| equivalents | | | |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Cash and cash equivalents at beginning of | 187,642 | | 35,886 |
| year | | | |
+--------------------------------------------+---------------+--+-------------+
| | | | |
+--------------------------------------------+---------------+--+-------------+
| Cash and cash equivalents at end of year | 185,352 | | 187,642 |
+--------------------------------------------+---------------+--+-------------+
Basis of preparation
The Group's results incorporated in the preliminary announcement have been
prepared in accordance with International Financial Reporting Standards as
adopted by the EU ('Adopted IFRSs').
The financial information set out above does not constitute the Company's
statutory accounts for the year ended 31 December 2008 but is derived from those
accounts. The auditors have reported on those accounts; their report was
unqualified.
This preliminary announcement has been prepared in accordance with relevant
legislation, which may differ from legislation in other jurisdictions.
The Annual Report and Accounts for the year ended 31 December 2008 will be sent
to shareholders in June 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UVSARKRRNRAR
1 Year Establishment Investment Chart |
1 Month Establishment Investment Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
