Hong Kong Exchanges and Clearing Limited Investor Investment Service Centre Listed Companies Information CH CONSERVATION<00290> - Results Announcement China Conservational Power Holdings Limited announced on 23/12/2004: (stock code: 00290 ) Year end date: 31/03/2005 Currency: HKD Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/04/2004 from 01/04/2003 to 30/09/2004 to 30/09/2003 Note ('000 ) ('000 ) Turnover : 63,930 70,361 Profit/(Loss) from Operations 3 : (22,168) (7,603) Finance cost : (185) (146) Share of Profit/(Loss) of Associates : (323) (151) Share of Profit/(Loss) of Jointly Controlled Entities : (2,601) 195 Profit/(Loss) after Tax & MI : (24,708) (7,692) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) 7 : (0.077) (0.034) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (24,708) (7,692) Interim Dividend 6 : 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. BASIS OF PREPARATION AND ACCOUNTING POLICIES The condensed financial statements have been prepared in accordance with the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and with the Statement of Standard Accounting Practice No. 25 "Interim financial reporting" issued by the Hong Kong Institute of Certified Public Accountants. The condensed financial statements have been prepared under the historical cost convention as modified for the revaluation of certain investments in securities. These condensed financial statements should be read in conjunction with the 2004 annual report. The basis of preparation and accounting policies adopted in the preparation of these condensed financial statements are consistent with those followed in the preparation of the Group's annual audited financial statements for the year ended 31 March 2004. 2. SEGMENT INFORMATION For management purposes, the Group is currently organised into five operating divisions - electrical engineering contracting, sale of electrical goods, securities brokerage, sea freight forwarding services and sale of home electrical appliances. These divisions are the basis on which the Group reports its primary segment information. Business Segments (Note) Sale of Sale of Sea home Elect- elect- freight elect- Others Elimi- Conso- rical rical Secur- forwarding rical nations lidated engineer- goods ities services applian- ing broke- ces contrac- rage ting HK$ HK$ HK$ HK$ HK$ HK$ HK$ HK$ '000 '000 '000 '000 '000 '000 '000 '000 For the six months ended 30 September 2004 Turnover External sales 27,887 1,788 1,637 31,738 858 22 - 63,930 Inter-segment sales - 1,191 - - - - (1,191) - -------------------------------------------------------------------------- Total revenue 27,887 2,979 1,637 31,738 858 22 (1,191) 63,930 ========================================================================= Inter-segment sales are charged at prevailing market rates Results Segment results 2,187 (1,115) (595) (20) (1,362) (1) - (906) ============================================================== Interest income 1,847 Other operating income 502 Unrealised holding loss on listed other investments (62) Unallocated expenses (23,549) --------- Loss from operations (22,168) Finance costs (185) Gain on disposal of a subsidiary 569 Share of results of associates (323) Share of results of a joint venture (2,601) -------- Loss before taxation (24,708) Taxation - -------- Loss before minority interests (24,708) Minority interests - -------- Net loss for the period (24,708) ======== Note: The Group commenced this operation during the period ended 30 September 2004. Electrical Sale of engineering electrical Securities contracting goods brokerage Others Elimi- Consol- nations idated HK$ HK$ HK$ HK$ HK$ HK$ '000 '000 '000 '000 '000 '000 For the six months ended 30 September 2003 Turnover External sales 56,508 11,590 2,051 212 - 70,361 Inter-segment sales - 3,813 - - (3,813) - ----------------------------------------------------------------------- Total revenue 56,508 15,403 2,051 212 (3,813) 70,361 ======================================================================= Inter-segment sales are charged at prevailing market rates Results Segment results 260 1,332 (235) (332) - 1,025 ========================================================== Interest income 462 Other operating income 323 Unrealised holding gains on listed other investments 5,213 Unallocated expenses (14,626) -------- Loss from operations (7,603) Finance costs (146) Share of results of associates (151) Share of results of a joint venture 195 ------ Loss before taxation (7,705) Taxation - -------- Loss before minority interests (7,705) Minority interests 13 - -------- Net loss for the period (7,692) ======= 3. LOSS FROM OPERATIONS Six months ended 30 September 2004 2003 HK$'000 HK$'000 Loss from operations has been arrived at after charging: Depreciation of property, plant and equipment 1,770 1,797 Amortisation of goodwill arising on acquisition of subsidiaries included in administrative expenses 78 743 Amortisation of trading right in respect of securities trading included in administrative expenses 125 185 Loss on disposal of property, plant and equipment 169 80 Cost of inventories recognised as expense 3,213 11,938 Loss on disposal of investments in securities 4,753 - ========= ======== 4. IMPAIRMENT LOSSES Six months ended 30 September 2004 2003 HK$'000 HK$'000 Impairment losses in respect of: Goodwill arising from acquisition of subsidiaries 2,373 - ======= ====== 5. TAXATION Hong Kong Profits Tax is calculated at 17.5% (2003: 17.5%) of the estimated assessable profit for the period. Taxation in other jurisdictions is calculated at the rates prevailing in the respective jurisdictions. No provision for taxation has been made as the Group had no assessable profits for the period. The Group did not have any significant movements in deferred taxation for the six months ended 30 September 2004. 6. DIVIDENDS No dividends were paid or declared during the period. The directors do not recommend the payment of any interim dividend for the six months ended 30 September 2004 (For the six months ended 30 September 2003: Nil). 7. LOSS PER SHARE The loss per share is calculated based on the loss for the period amounting approximately HK$24,708,000 (For the six months ended 30 September 2003: loss of approximately HK$7,692,000) and 322,272,000 shares (For the six months ended 30 September 2003: the weighted average of 223, 800,000 shares) in issue. No diluted loss per share for the six months ended 30 September 2003 and 2004 has been presented as the exercise of the Company's outstanding share options would result in a decrease in the loss per share for both periods.