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MISCELLANEOUS
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Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement respect to * is submitted with CITY DEVELOPMENTS LIMITED 196300316Z CITY DEVELOPMENTS LIMITED
CITY DEVELOPMENTS LIMITED
Announcement is submitted by * Designation * Date & Time of Broadcast Announcement No.
Enid Ling Peek Fong Company Secretary 08-May-2012 20:10:24 00167
>> Announcement Details The details of the announcement start here ... Announcement Title * Announcement by subsidiary company, City e-Solutions Limited on Unaudited Financial Results for the Three Months ended 31 March 2012 Please see the attached announcement released by City e-Solutions Limited on 8 May 2012.
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
City e-Solutions Limited
(Incorporated in the Cayman Islands with limited liability) (Stock Code: 557)
UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2012
SUMMARY To provide the market with updated information, the Board of City e-Solutions Limited (the “Company”) announces the unaudited consolidated financial results of the Company and its subsidiaries and its jointly controlled entities (the “Group”) for the three months ended 31 March 2012. This announcement is made in accordance with Rule 13.09(1) of the Listing Rules. The unaudited consolidated profit attributable to equity shareholders of the Company for the three months ended 31 March 2012 was approximately HK$7.6 million. Shareholders of the Company and potential investors should note that all figures contained herein are unaudited and are advised to exercise caution when dealing in the shares of the Company. This announcement is made in accordance with Rule 13.09(1) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (“Listing Rules”). To provide the market with updated information, the board (“Board”) of directors (“Directors”) of City e-Solutions Limited (the “Company”) announces the unaudited consolidated financial results of the Company and its subsidiaries and its jointly controlled entities (the “Group”) for the three months ended 31 March 2012 (the “Period”). — 1 —
CONSOLIDATED INCOME STATEMENT Three months ended 31 March 2012 2011 HK$’000 HK$’000 (unaudited) (unaudited)
Note
Continuing operations Turnover Cost of sales Gross profit Other net gains/(losses) Administrative expenses Finance cost Profit/(Loss) from operations before taxation Income tax Profit/(Loss) from continuing operations Discontinued operations Profit from discontinued operations, net of tax Profit/(Loss) for the period Attributable to : Equity shareholders of the Company Non-controlling interests Profit/(Loss) for the period Earnings/ (Losses) per share Basic earnings/(losses) per share Continuing operations Basic earnings/(losses) per share
2
28,534 (8,506) 20,028 11,395 (26,701) (718) 4,004 1,404 5,408
18,738 (5,476) 13,262 (7,783) (21,017) (538) (16,076) 1,963 (14,113)
3 4
5 6
— 5,408
9,002 (5,111)
7,604 (2,196) 5,408 HK cents 1.99 HK cents 1.99
(4,613) (498) (5,111) HK cents (1.21) HK cents (3.56)
— 2 —
STATEMENT OF FINANCIAL POSITION (unaudited) The Group As at As at 31 March 31 December 2011 2012 HK$’000 HK$’000 Non-current assets Property, plant and equipment Intangible assets Goodwill Deferred tax assets Total non-current assets Current assets Trading securities Trade and other receivables Current tax recoverable Cash and cash equivalents Current liabilities Trade and other payables Interest-bearing loans Provision for taxation Net current assets Total assets less current liabilities Non-current liabilities Interest-bearing loans NET ASSETS CAPITAL AND RESERVES Share capital Reserves Total equity attributable to equity shareholders of the Company Non-controlling interests TOTAL EQUITY
90,642 21,172 2,229 23,275 137,318
90,775 2,564 2,232 21,928 117,499
89,135 54,154 263 388,050 531,602 (37,217) (560) — (37,777) 493,825 631,143
79,900 53,547 357 399,681 533,485 (33,788) (562) — (34,350) 499,135 616,634
(37,222) 593,921
(37,439) 579,195
382,450 169,536 551,986 41,935 593,921
382,450 162,064 544,514 34,681 579,195
— 3 —
Notes:1. The Group’s unaudited consolidated financial results for the three months ended 31 March 2012 have been prepared in accordance with the same accounting policies adopted by the Group as disclosed in the annual report for the year ended 31 December 2011 and have not been reviewed by the Company’s auditors. 2. Turnover Three months ended 31 March 2012 2011 HK$’000 HK$’000 Continuing operations Revenue from external customer - Investment holding - Hospitality Interest income
900 26,723 911 28,534
— 18,406 332 18,738
3.
Other net gains/(losses) Three months ended 31 March 2012 2011 HK$’000 HK$’000 Net realised and unrealised foreign exchange gains Net realised and unrealised gains/(losses) on trading securities 2,361 9,034 11,395 8,791 (16,574) (7,783)
4.
Administrative expenses Administrative expenses comprise mainly expenses incurred by the Group’s Hospitality segment which include the acquisition-related costs relating to a new subsidiary, Sceptre Hospitality Resources, LLC and expenses incurred by the 2 hotels owned by the Group’s jointly-controlled entities.
— 4 —
5.
Discontinued operations In March 2011, a gain of HK$9.0 million (S$1.46 million) was recorded by the Group following the receipt of the final instalment payment of the deferred consideration arising from the disposal of the Group’s 50% shareholding interest in MindChamps Holdings Pte. Limited (“MindChamps”) on 23 March 2009.
6.
Profit/(Loss) for the period is arrived after charging/(crediting) Three months ended 31 March 2012 2011 HK$’000 HK$’000 Depreciation of property, plant and equipment Amortisation of intangible assets Dividends and interest income Gain on disposal of discontinued operations 1,542 284 (1,811) — 463 5 (322) (9,002)
7.
Acquisition of a new subsidiary, Sceptre Hospitality Resources, LLC, (“SHR”) On 27 February 2012, the Group’s indirect subsidiary, SWAN USA, Inc. (“SWAN”), and Whiteboard Labs, LLC (“WBL”) entered into an Agreement for the formation and operation of Sceptre Hospitality Resources, LLC (“SHR”) with SWAN and WBL each having 51% and 49% in the equity interest in SHR respectively. The Group has contributed US$1.3 million (approximately HK$10.1 million) in exchange for the 51% equity interest in SHR. Arising from this acquisition, the Group recognised an intangible asset of approximately HK$18.6 million on a provisional basis pending the completion of an independent valuation.
BUSINESS REVIEW AND PROSPECTS The Group recorded a net profit attributable to the equity shareholders of the Company of HK$7.6 million as compared with a net loss attributable to the equity shareholders of the Company of HK$4.6 million in the previous corresponding period due mainly to the unrealised valuation gains from the Group’s securities holding as at 31 March 2012.
— 5 —
During the period under review, the Group reported an improvement in revenue to HK$28.5 million, an increase of HK$9.8 million or 52.3% from HK$18.7 million in the previous corresponding period. The Group’s Hospitality segment reported higher operating revenue of HK$26.7 million, an increase of HK$8.3 million or 45.2% from HK$18.4 million in the previous corresponding period. The increase in revenue from the Hospitality segment can be attributed mainly to the revenue contribution from the Group’s jointly-controlled entities (“JCE”) which own the two hotels in the U.S. These hotels contributed a full three months revenue of HK$13.1 million for the period under review, an increase of HK$6.0 million or 85.0%, from HK$7.1 million in the corresponding period due to the partial consolidation of the JCE which owns the Sheraton Chapel Hill Hotel, North Carolina, U.S., as the acquisition was only completed on 22 March 2011. On 27 February 2012, the Group successfully acquired Whiteboard Labs, LLC (“WBL”) and merged it with the Group’s in-house reservations management and electronic distribution arm, Sceptre Hospitality, to create a new subsidiary, Sceptre Hospitality Resources, LLC (“SHR”), in which the Group holds a 51% interest. WBL provides the Group with various important components of hotel reservation technology, including a proprietary, technologically-advanced Central Reservations System (“CRS”) platform that is currently used by over 4,000 hotels. This CRS platform will become an integral component of the Group’s Hospitality segment and paves the way for additional sources of income and growth opportunities. For the short period of operation following completion of the transaction, SHR’s contribution to the Group’s revenue is not material, though the Group did incur acquisition-related expenses amounting to HK$2.3 million. Despite higher operating revenues recorded by the Group’s Hospitality segment, this segment incurred the same amount of operating loss of HK$5.3 million for the period under review as that of the previous corresponding period. The losses can be attributed mainly to the acquisition-related expenses, higher depreciation and amortisation and interest expenses. On the Investment Holding segment, the Group recorded a net realised and unrealised translation exchange gains of HK$2.4 million arising mainly from the Sterling Pound denominated trading security and cash deposit as well as an unrealised valuation gains of HK$9.0 million from the Group’s securities holding as at 31 March 2012. Overall, a total net realised and unrealised gain of HK$11.4 million was recorded for the period under review as compared with a total net realised and unrealised losses of HK$7.8 million reported in the previous corresponding period.
— 6 —
The Group continues to hold some trading securities while its cash reserves are in a basket of currencies. From time to time, there could be continued adjustments attributable to unrealised gains or losses arising from the fair value readjustments of the Group’s trading securities and unrealised gains or losses on the revaluation of foreign currency cash deposits. Shareholders of the Company and potential investors should note that all figures contained herein are unaudited and are advised to exercise caution when dealing in the shares of the Company. By order of the Board Kwek Leng Beng Chairman Hong Kong, 8 May 2012
As at the date of this announcement, the Board is comprised of 8 directors, of which 4 are executive directors, namely Mr. Kwek Leng Beng, Mr. Kwek Leng Joo, Mr. Gan Khai Choon and Mr. Lawrence Yip Wai Lam, 1 is a non-executive director, namely Mr. Chan Bernard Charnwut and 3 are independent non-executive directors, namely Dr. Lo Ka Shui, Mr. Lee Jackson a.k.a. Li Chik Sin and Mr. Teoh Teik Kee.
— 7 —
MISCELLANEOUS
Page 1 of 1
Print this page Miscellaneous * Asterisks denote mandatory information Name of Announcer * Company Registration No. Announcement submitted on behalf of Announcement respect to * is submitted with CITY DEVELOPMENTS LIMITED 196300316Z CITY DEVELOPMENTS LIMITED
CITY DEVELOPMENTS LIMITED
Announcement is submitted by * Designation * Date & Time of Broadcast Announcement No.
Enid Ling Peek Fong Company Secretary 08-May-2012 20:10:24 00167
>> Announcement Details The details of the announcement start here ... Announcement Title * Announcement by subsidiary company, City e-Solutions Limited on Unaudited Financial Results for the Three Months ended 31 March 2012 Please see the attached announcement released by City e-Solutions Limited on 8 May 2012.
Description
Attachments
E_CITY.pdf
Total size = 39K (2048K size limit recommended)
Close Window
https://www1.sgxnet.sgx.com/sgxnet/LCAnncSubmission.nsf/vwprint/1C621C378D0FC... 8/5/2012
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
City e-Solutions Limited
(Incorporated in the Cayman Islands with limited liability) (Stock Code: 557)
UNAUDITED FINANCIAL RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2012
SUMMARY To provide the market with updated information, the Board of City e-Solutions Limited (the “Company”) announces the unaudited consolidated financial results of the Company and its subsidiaries and its jointly controlled entities (the “Group”) for the three months ended 31 March 2012. This announcement is made in accordance with Rule 13.09(1) of the Listing Rules. The unaudited consolidated profit attributable to equity shareholders of the Company for the three months ended 31 March 2012 was approximately HK$7.6 million. Shareholders of the Company and potential investors should note that all figures contained herein are unaudited and are advised to exercise caution when dealing in the shares of the Company. This announcement is made in accordance with Rule 13.09(1) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited (“Listing Rules”). To provide the market with updated information, the board (“Board”) of directors (“Directors”) of City e-Solutions Limited (the “Company”) announces the unaudited consolidated financial results of the Company and its subsidiaries and its jointly controlled entities (the “Group”) for the three months ended 31 March 2012 (the “Period”). — 1 —
CONSOLIDATED INCOME STATEMENT Three months ended 31 March 2012 2011 HK$’000 HK$’000 (unaudited) (unaudited)
Note
Continuing operations Turnover Cost of sales Gross profit Other net gains/(losses) Administrative expenses Finance cost Profit/(Loss) from operations before taxation Income tax Profit/(Loss) from continuing operations Discontinued operations Profit from discontinued operations, net of tax Profit/(Loss) for the period Attributable to : Equity shareholders of the Company Non-controlling interests Profit/(Loss) for the period Earnings/ (Losses) per share Basic earnings/(losses) per share Continuing operations Basic earnings/(losses) per share
2
28,534 (8,506) 20,028 11,395 (26,701) (718) 4,004 1,404 5,408
18,738 (5,476) 13,262 (7,783) (21,017) (538) (16,076) 1,963 (14,113)
3 4
5 6
— 5,408
9,002 (5,111)
7,604 (2,196) 5,408 HK cents 1.99 HK cents 1.99
(4,613) (498) (5,111) HK cents (1.21) HK cents (3.56)
— 2 —
STATEMENT OF FINANCIAL POSITION (unaudited) The Group As at As at 31 March 31 December 2011 2012 HK$’000 HK$’000 Non-current assets Property, plant and equipment Intangible assets Goodwill Deferred tax assets Total non-current assets Current assets Trading securities Trade and other receivables Current tax recoverable Cash and cash equivalents Current liabilities Trade and other payables Interest-bearing loans Provision for taxation Net current assets Total assets less current liabilities Non-current liabilities Interest-bearing loans NET ASSETS CAPITAL AND RESERVES Share capital Reserves Total equity attributable to equity shareholders of the Company Non-controlling interests TOTAL EQUITY
90,642 21,172 2,229 23,275 137,318
90,775 2,564 2,232 21,928 117,499
89,135 54,154 263 388,050 531,602 (37,217) (560) — (37,777) 493,825 631,143
79,900 53,547 357 399,681 533,485 (33,788) (562) — (34,350) 499,135 616,634
(37,222) 593,921
(37,439) 579,195
382,450 169,536 551,986 41,935 593,921
382,450 162,064 544,514 34,681 579,195
— 3 —
Notes:1. The Group’s unaudited consolidated financial results for the three months ended 31 March 2012 have been prepared in accordance with the same accounting policies adopted by the Group as disclosed in the annual report for the year ended 31 December 2011 and have not been reviewed by the Company’s auditors. 2. Turnover Three months ended 31 March 2012 2011 HK$’000 HK$’000 Continuing operations Revenue from external customer - Investment holding - Hospitality Interest income
900 26,723 911 28,534
— 18,406 332 18,738
3.
Other net gains/(losses) Three months ended 31 March 2012 2011 HK$’000 HK$’000 Net realised and unrealised foreign exchange gains Net realised and unrealised gains/(losses) on trading securities 2,361 9,034 11,395 8,791 (16,574) (7,783)
4.
Administrative expenses Administrative expenses comprise mainly expenses incurred by the Group’s Hospitality segment which include the acquisition-related costs relating to a new subsidiary, Sceptre Hospitality Resources, LLC and expenses incurred by the 2 hotels owned by the Group’s jointly-controlled entities.
— 4 —
5.
Discontinued operations In March 2011, a gain of HK$9.0 million (S$1.46 million) was recorded by the Group following the receipt of the final instalment payment of the deferred consideration arising from the disposal of the Group’s 50% shareholding interest in MindChamps Holdings Pte. Limited (“MindChamps”) on 23 March 2009.
6.
Profit/(Loss) for the period is arrived after charging/(crediting) Three months ended 31 March 2012 2011 HK$’000 HK$’000 Depreciation of property, plant and equipment Amortisation of intangible assets Dividends and interest income Gain on disposal of discontinued operations 1,542 284 (1,811) — 463 5 (322) (9,002)
7.
Acquisition of a new subsidiary, Sceptre Hospitality Resources, LLC, (“SHR”) On 27 February 2012, the Group’s indirect subsidiary, SWAN USA, Inc. (“SWAN”), and Whiteboard Labs, LLC (“WBL”) entered into an Agreement for the formation and operation of Sceptre Hospitality Resources, LLC (“SHR”) with SWAN and WBL each having 51% and 49% in the equity interest in SHR respectively. The Group has contributed US$1.3 million (approximately HK$10.1 million) in exchange for the 51% equity interest in SHR. Arising from this acquisition, the Group recognised an intangible asset of approximately HK$18.6 million on a provisional basis pending the completion of an independent valuation.
BUSINESS REVIEW AND PROSPECTS The Group recorded a net profit attributable to the equity shareholders of the Company of HK$7.6 million as compared with a net loss attributable to the equity shareholders of the Company of HK$4.6 million in the previous corresponding period due mainly to the unrealised valuation gains from the Group’s securities holding as at 31 March 2012.
— 5 —
During the period under review, the Group reported an improvement in revenue to HK$28.5 million, an increase of HK$9.8 million or 52.3% from HK$18.7 million in the previous corresponding period. The Group’s Hospitality segment reported higher operating revenue of HK$26.7 million, an increase of HK$8.3 million or 45.2% from HK$18.4 million in the previous corresponding period. The increase in revenue from the Hospitality segment can be attributed mainly to the revenue contribution from the Group’s jointly-controlled entities (“JCE”) which own the two hotels in the U.S. These hotels contributed a full three months revenue of HK$13.1 million for the period under review, an increase of HK$6.0 million or 85.0%, from HK$7.1 million in the corresponding period due to the partial consolidation of the JCE which owns the Sheraton Chapel Hill Hotel, North Carolina, U.S., as the acquisition was only completed on 22 March 2011. On 27 February 2012, the Group successfully acquired Whiteboard Labs, LLC (“WBL”) and merged it with the Group’s in-house reservations management and electronic distribution arm, Sceptre Hospitality, to create a new subsidiary, Sceptre Hospitality Resources, LLC (“SHR”), in which the Group holds a 51% interest. WBL provides the Group with various important components of hotel reservation technology, including a proprietary, technologically-advanced Central Reservations System (“CRS”) platform that is currently used by over 4,000 hotels. This CRS platform will become an integral component of the Group’s Hospitality segment and paves the way for additional sources of income and growth opportunities. For the short period of operation following completion of the transaction, SHR’s contribution to the Group’s revenue is not material, though the Group did incur acquisition-related expenses amounting to HK$2.3 million. Despite higher operating revenues recorded by the Group’s Hospitality segment, this segment incurred the same amount of operating loss of HK$5.3 million for the period under review as that of the previous corresponding period. The losses can be attributed mainly to the acquisition-related expenses, higher depreciation and amortisation and interest expenses. On the Investment Holding segment, the Group recorded a net realised and unrealised translation exchange gains of HK$2.4 million arising mainly from the Sterling Pound denominated trading security and cash deposit as well as an unrealised valuation gains of HK$9.0 million from the Group’s securities holding as at 31 March 2012. Overall, a total net realised and unrealised gain of HK$11.4 million was recorded for the period under review as compared with a total net realised and unrealised losses of HK$7.8 million reported in the previous corresponding period.
— 6 —
The Group continues to hold some trading securities while its cash reserves are in a basket of currencies. From time to time, there could be continued adjustments attributable to unrealised gains or losses arising from the fair value readjustments of the Group’s trading securities and unrealised gains or losses on the revaluation of foreign currency cash deposits. Shareholders of the Company and potential investors should note that all figures contained herein are unaudited and are advised to exercise caution when dealing in the shares of the Company. By order of the Board Kwek Leng Beng Chairman Hong Kong, 8 May 2012
As at the date of this announcement, the Board is comprised of 8 directors, of which 4 are executive directors, namely Mr. Kwek Leng Beng, Mr. Kwek Leng Joo, Mr. Gan Khai Choon and Mr. Lawrence Yip Wai Lam, 1 is a non-executive director, namely Mr. Chan Bernard Charnwut and 3 are independent non-executive directors, namely Dr. Lo Ka Shui, Mr. Lee Jackson a.k.a. Li Chik Sin and Mr. Teoh Teik Kee.
— 7 —
This document is © 2012 by Hong Leong Group Singapore - all rights reserved.
