irasia.com


INTERIM RESULTS

The Directors are pleased to present the Group's interim report and condensed accounts for the six months ended 30th September 2000. The Group reported a profit attributable to shareholders of HK$15.6 million for the period under review. The consolidated results of the Group for the six months ended 30th September 2000, the consolidated balance sheet as at 30th September 2000, the condensed consolidated cash flow statement and the condensed statement of recognised gains and losses of the Group for the six months ended 30th September 2000, all of which are unaudited, along with the relevant explanatory notes, are set out below.

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2000

                                                             Unaudited
                                                         Six Months ended
                                                           30th September
                                                           2000      1999
                                                  Note  HK$'000   HK$'000

Turnover                                            2   593,174   550,213

Cost of sales                                          (261,136) (220,980)
                                                        -------   -------
Gross profit                                            332,038   329,233

Other income                                             16,515    19,565

Selling expenses                                       (176,807) (186,666)
General and administrative expenses                     (77,034)  (80,705)
Other operating expenses                                (72,457)  (75,319)

Profit on repurchase of convertible notes                 4,228    34,580
Foreign exchange gain on convertible notes                5,365     7,133
Net profit/(loss) on sales of land and buildings         17,799   (15,410)
Net unrealised (loss)/gain on marketable securities     (11,541)    9,015

Operating profit                                    3    38,106    41,426

Finance costs                                           (21,642)  (20,405)
                                                        -------   -------
Profit before taxation                                   16,464    21,021

Taxation                                            4      (780)     (559)
                                                        -------   -------
Profit after taxation                                    15,684    20,462

Minority interests                                            -       (83)
                                                        -------   -------
Profit attributable to shareholders                      15,684    20,379
                                                        =======   =======
Earnings per share                                  6     cents     cents

- basic                                                    1.68      2.18
- diluted                                                  1.66      2.17
                                                        =======   =======

CONSOLIDATED BALANCE SHEET

AT 30TH SEPTEMBER 2000 AND 31ST MARCH 2000

                                                    Unaudited
                                               30th September   31st March
                                                         2000         2000
                                         Note         HK$'000      HK$'000

Fixed assets                                          957,963    1,047,772
Investment securities                                   4,299        4,299
Trademarks and patents                                 28,459       29,606

Current assets
Stocks                                                379,770      361,912
Debtors and prepayments                    7          351,675      328,073
Marketable securities                                  10,722       22,265
Cash and bank balances                                 63,007       45,082
                                                    ---------    ---------
                                                      805,174      757,332
                                                    ---------    ---------
Current liabilities
Bank overdrafts and short term loans
  Secured                                             100,207       55,396
  Unsecured                                             4,913       25,009
Creditors and accruals                     8          331,676      322,118
Convertible notes                          9          240,459      275,652
Current portion of other
  long term liabilities                   11            8,662       36,358
Taxation payable                                       10,952       14,024
                                                    ---------    ---------
                                                      696,869      728,557
                                                    ---------    ---------
Net current assets                                    108,305       28,775
                                                    ---------    ---------
Employment of funds                                 1,099,026    1,110,452
                                                    ---------    ---------
Financed by:

Share capital                             10           93,634       93,634
Reserves                                              631,246      631,262
                                                    ---------    ---------
Shareholders' funds                                   724,880      724,896

Minority interests                                      1,749        1,670
Deferred taxation                                         134          149
Loans from shareholders                                 3,892        3,892
Other long term liabilities               11          368,371      379,845
                                                    ---------    ---------
Funds employed                                      1,099,026    1,110,452
                                                    =========    =========

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2000

                                                                Unaudited
                                                                  HK$'000

Net cash inflow from operating activities                          21,257
Net cash outflow from returns on
  investments and servicing of finance                            (19,528)
Net tax paid                                                       (2,132)
Net cash inflow from investing activities                          72,054
Net cash outflow from financing                                   (71,755)
                                                               ----------
Decrease in cash and cash equivalents                                (104)
Cash and cash equivalents at 1st April                            (35,323)
Effect of foreign exchange rate changes                            (6,686)
                                                               ----------
Cash and cash equivalents at 30th September                       (42,113)
                                                               ==========
Analysis of balances of cash and cash equivalents:
  Cash and bank balances                                           63,007
  Bank overdrafts and short term loans
    Secured                                                      (100,207)
    Unsecured                                                      (4,913)
                                                               ----------
                                                                  (42,113)
                                                               ==========

CONDENSED STATEMENT OF RECOGNISED GAINS AND LOSSES

FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2000

                                                             Unaudited
                                                         Six Months ended
                                                           30th September
                                                           2000      1999
                                                        HK$'000   HK$'000

Exchange losses arising from translation
  of overseas subsidiary
  companies not recognised in the profit
  and loss account                                      (15,700)   (6,815)

Profit attributable to shareholders                      15,684    20,379
                                                        -------   -------
Total recognised (losses)/gains                             (16)   13,564
                                                        =======   =======

NOTES TO CONDENSED INTERIM ACCOUNTS

1. Principal accounting policies

These unaudited consolidated condensed interim accounts ("interim accounts") are prepared in accordance with Statement of Standard Accounting Practice ("SSAP") No. 25, "Interim Financial Reporting", issued by the Hong Kong Society of Accountants, (as applicable to condensed interim accounts), and Appendix 16 of the Listing Rules of The Stock Exchange of Hong Kong Limited. As a result of adoption of SSAP 2.101 "Presentation of financial statements", the presentation and classification of certain comparative figures have been adjusted or extended to conform with the current period's presentation.

The accounting policies adopted in the preparation of these interim accounts are consistent with those used in the annual accounts for the year ended 31st March 2000.

2. Turnover and profit before taxation

The analysis of the Group's turnover and profit before taxation by activities and geography are as follows:

                                                          Profit before
                                         Turnover           taxation
                                        Unaudited           Unaudited
                                     Six months ended    Six months ended
                                       30th September      30th September
                                        2000     1999       2000     1999
                                      HK'000   HK'000     HK'000   HK'000

Analysis by activities:

  Investment                             906   24,729     (7,115)  52,702
  Property                            58,970   19,211     20,734  (15,544)
  Retailing and trading              533,298  506,273     15,871   (3,749)
  Group administration overheads           -        -    (13,026) (12,388)
                                     -------  -------    -------  -------
                                     593,174  550,213     16,464   21,021
                                     =======  =======    =======  =======

                                                          Profit before
                                         Turnover           taxation
                                        Unaudited           Unaudited
                                     Six months ended    Six months ended
                                       30th September      30th September
                                        2000     1999       2000     1999
                                      HK'000   HK'000     HK'000   HK'000

Geographical analysis:

  Hong Kong                          385,461  300,478     17,619    9,278
  South East and Far East Asia       117,820  107,574     (1,075)    (224)
  Europe                              71,964  118,071     11,951   23,365
  North America                       10,262   17,719       (499)     646
  Others                               7,667    6,371      1,494      344
  Group administration overheads           -        -    (13,026) (12,388)
                                     -------  -------    -------  -------
                                     593,174  550,213     16,464   21,021
                                     =======  =======    =======  =======

3. Operating profit

                                                             Unaudited
                                                         Six Months ended
                                                          30th September
                                                           2000      1999
                                                        HK$'000   HK$'000

Operating profit is stated after charging:

  Depreciation
    Owned fixed assets                                   23,319    22,452
    Leased fixed assets                                     168       169
  Amortisation of trademarks and patents                  1,042     1,046
  Loss on disposal of fixed assets                        1,539       646
  Provision for stock obsolescence
    and stocks written off                                3,354     4,100
  Provision for doubtful debts
    and bad debts written off                             1,141     4,273
                                                        =======   =======
and after crediting:

  Gain on sales of marketable securities                      -    10,404
                                                        =======   =======

4. Taxation

Hong Kong profits tax has been provided at the rate of 16% (1999: 16%) on the estimated assessable profit for the period less relief for available tax losses. Taxation on overseas profits has been calculated on the estimated assessable profit for the period at the rates of taxation prevailing in the countries in which the Group operates.

The amount of taxation charged to the consolidated profit and loss account represents:

                                                              Unaudited
                                                         Six Months ended
                                                          30th September
                                                           2000      1999
                                                        HK$'000   HK$'000

Hong Kong profits tax                                      (405)        -
Overseas taxation                                          (169)     (367)
Under provision in prior periods                           (206)     (192)
                                                        -------   -------
                                                           (780)     (559)
                                                        =======   =======

5. Interim dividends

The Directors have resolved not to declare an interim dividend for this period (1999: nil).

6. Earnings per share

The calculation of basic earnings per share is based on the Group's profit attributable to shareholders of HK$15,684,000 (1999: HK$20,379,000) and on the weighted average number of 936,340,023 shares (1999: 936,340,023 shares) in issue during the period.

The calculation of diluted earnings per share is based on profit attributable to shareholders of HK$15,684,000 (1999: HK$20,379,000) and on the weighted average number of 936,340,023 shares (1999: 936,340,023 shares) in issue during the period plus the weighted average number of 5,857,627 shares (1999: 4,230,769 shares) deemed to have been issued at no consideration pursuant to the relevant outstanding options having been exercised.

7. Debtors and prepayments

The Group allows an average credit period of 60 days to its trade debtors. Included in debtors and prepayments are trade debtors (net of provision for doubtful debts) with the following aging analysis:

                                                   Unaudited
                                              30th September   31st March
                                                        2000         2000
                                                     HK$'000      HK$'000

Trade debtors
  1-60 days                                           24,426       20,565
  Over 60 days                                        20,426       13,863
                                                  ----------   ----------
                                                      44,852       34,428
Deposits, prepayments and other debtors              306,823      293,645
                                                  ----------   ----------
                                                     351,675      328,073
                                                  ==========   ==========

8. Creditors and accruals

Included in creditors and accruals are trade creditors with the following aging analysis:

                                                   Unaudited
                                              30th September   31st March
                                                        2000         2000
                                                     HK$'000      HK$'000

Trade creditors
  1-60 days                                           92,092       58,349
  Over 60 days                                       116,279      113,830
                                                  ----------   ----------
                                                     208,371      172,179
Accrued expenses and other payables                  123,305      149,939
                                                  ----------   ----------
                                                     331,676      322,118
                                                  ==========   ==========

9. Convertible notes

During the period, Swiss Francs Convertible Notes (the "Notes") amounting to SFr 6.2 million were repurchased at an average discount of 12%. At the balance sheet date, forward contracts for purchase of SFr 40.47 million at an average exchange rate of HK$4.5818 to SFr 1 had been arranged. Therefore, the same amount of the Notes outstanding were converted at the average exchange rate while the unhedged balance of the Notes were converted at current rate of the closing date.

10. Share capital

There was no change in the Company's share capital during the half year ended 30th September 2000. During the period, no further share options were granted by the Company and no share options outstanding as at 31st March 2000 were exercised by the option holders.

11. Other long term liabilities

                                                    Unaudited
                                               30th September   31st March
                                                         2000         2000
                                         Note         HK$'000      HK$'000

Bank loans, secured                       (a)         273,590      308,478
Obligations under finance leases          (a)           1,037        5,319
Loan from a related company               (b)          32,000       32,000
Retention money payable                                70,406       70,406
                                                   ----------   ----------
                                                      377,033      416,203
Amount payable within one year
  included under current liabilities                    8,662       36,358
                                                   ----------   ----------
                                                      368,371      379,845
                                                   ==========   ==========

(a) The bank loans and obligations under finance leases are repayable as follows:

                        Bank loans, secured         Obligations under
                                                      finance leases
                         Unaudited                   Unaudited
                    30th September  31st March  30th September  31st March
                              2000        2000            2000        2000
                           HK$'000     HK$'000         HK$'000     HK$'000

Within one year              8,018      32,317             644       4,041
In the second year           8,466      18,378             393       1,255
In the third to
  fifth year               243,581     252,213               -          23
After the fifth year        13,525       5,570               -           -
                        ----------  ----------      ----------  ----------
                           273,590     308,478           1,037       5,319
                        ==========  ==========      ==========  ==========

(b) The loan is unsecured, carries interest at prime rate and is repayable after 30th September 2001.

12. Contingent liabilities

                                                       Group                        Company
                                                Unaudited                     Unaudited
                                           30th September   31st March   30th September   31st March
                                                     2000         2000             2000         2000
                                                  HK$'000      HK$'000          HK$'000      HK$'000
(a) Guarantees to secure banking
      facilities for:
        Subsidiary companies                            -            -          902,341      674,841
        Third parties                                   -        1,190                -            -
    Other guarantees
      Subsidiary companies                              -            -          240,459      491,450
                                               ==========   ==========       ==========   ==========
(b) Bills discounted                                  901        1,093                -            -
                                               ==========   ==========       ==========   ==========
(c) Liability not provided for
      in respect of employees
      who have completed the
      required number of years
      of service under the Employment
      Ordinance to be eligible for long
      service payments on termination
      of their employment                           8,669        8,150                -            -
                                               ==========   ==========       ==========   ==========

(d) The status of the Group's litigation, arbitrations and liability for latent defects in respect of the sale of Titus Square were fully disclosed in the Annual Report 2000 except that determinations of the arbitrations are anticipated in the later part of 2001.

13. Commitments

(a) Commitments in respect of expenditure on leasehold improvements

                                                 Unaudited
                                            30th September     31st March
                                                     2000            2000
                                                  HK$'000         HK$'000

Contracted but not provided for                     5,501           8,218
                                               ==========      ==========

(b) Operating lease commitments payable in the next twelve months, analysed according to the period in which the leases expire, are as follows:

                          Land and buildings         Plant and machinery
                         Unaudited                   Unaudited
                    30th September  31st March  30th September  31st March
                              2000        2000            2000        2000
                           HK$'000     HK$'000         HK$'000     HK$'000

Within one year             46,582      48,907             383         398
In the second to
  fifth year               162,622     114,026             172         315
After the fifth year             -         225               -           -
                          --------    --------        --------    --------
                           209,204     163,158             555         713
                          ========    ========        ========    ========

(c) The details of a subsidiary company's commitment to repurchase a property previously sold were fully disclosed in the Annual Report 2000 except that the relevant subsidiary company and the purchaser had agreed to extend the exercise date of the option for one year to 27th February 2002.

14. Related party transactions

                                                                Unaudited
                                                         Six Months ended
                                                           30th September
                                                            2000     1999
                                                         HK$'000  HK$'000

Purchases of goods from a related company                 16,269    4,062
Rental income from related companies                         975      975
Interest income from a related company                     2,235    2,181
Interest expense paid to a related company                 1,499      857
Management fee receivable from a related company               -      980
                                                         =======  =======

The terms of these related party transactions had not changed from those disclosed in the Annual Report 2000.

15. Subsequent events

After 30th September 2000, the Group's Notes in a total nominal sum of SFr 23,300,000 were repurchased at an average discount of 10% and were subsequently cancelled.

MANAGEMENT DISCUSSION AND ANALYSIS

REVIEW OF GROUP OPERATIONS FOR THE SIX MONTHS ENDED 30TH SEPTEMBER 2000.

The Group reported a profit attributable to shareholders of HK$15.6 million compared to HK$20.4 million last year.

Retail and Trading Division

The results of the Group's Retail and Trading Division have largely improved. A profit of HK$15.9 million was recorded compared to a loss of HK$3.8 million over the same period last year. All our local retail chains recorded favourable growth both in terms of turnover and operating results. Turnover at City Chain, Optical 88 and Hipo.fant improved by 39%, 14% and 31% respectively.

City Chain Hong Kong and Macau reported a profit of HK$6.6 million this year, a substantial turnaround from the same period last year when losses of HK$12.9 million were reported. However, turnover and profits of our watch operations in South East Asia and Taiwan were undermined by political instability in Indonesia and Taiwan. Therefore, turnover for this region only improved by 7%. Watch operations in the PRC reported a healthy16% increase in turnover as a result of an improvement in sales at department stores and an increase in the number of adidas watch counters.

During the period under review, we continued to build upon City Chain's reputation further consolidating its market position in Hong Kong and regionally as a forefront fashion and trend setting watch chain. Shop renovations undertaken to create a fresh and sophisticated look and the introduction of new watch brands has helped us further to improve results. To meet the challenges of the e-commerce revolution and to complement our aspirations to become a formidable leader in the watch industry, City Chain launched its own cybermall, www.citychain.com in December this year. www.citychain.com provides latest news on watch trends and also offers on-line sales. Continuing to take advantage of relatively low rentals, more stores were opened at selected prime sites.

Optical 88 also reported improved profits compared to the same period last year. We continued to increase our market share by opening more shops. We will continue with our franchising strategy as this has proven to be successful.

Hipo.fant continued to report favourable growth and improvement during the period. Increase in turnover was due to several reasons; an increase in number of outlets and favourable response to our products. Breakeven figures were recorded compared to a loss for the same period last year.

The Group's total stores increased from 356 as at 31st March 2000 to 403 as at 30th November 2000.

Our export division and overseas subsidiaries recorded a 37% fall in turnover during the period dragging down profits. This was due partly to the strength of the US$ resulting in high unit export prices and partly to the life cycle of previous product ranges. We see turnover improving as new and more price competitive products are launched in the later half of the year.

Property Investment

During the period, two shop properties were disposed of at an aggregate sales proceeds of HK$107 million. The net profit was about HK$18 million. Stelux House continues to contribute stable income and leases due for renewal have been renewed at satisfactory rents.

Prospects

We are optimistic that the Group's core business - retail and trading will continue to post positive results for the second half of the year as we benefit from largely improved consumer sentiment in the region and reengineering efforts to the City Chain brand and image.

FINANCIAL RESOURCES

Financing and cash management activities of the Group are coordinated at head office for the best utilisation of the Group's financial resources.

The Group's bank borrowings at balance sheet date were HK$379 million (at 31st March 2000: HK$389 million), out of which, HK$113 million were repayable within 12 months. 39% (at 31st March 2000: 42%) of the Group's borrowings (including bank borrowings and the Notes) were denominated in Swiss Francs and the other borrowings were denominated in Hong Kong Dollars. The Notes carry a fixed interest rate of 1.75% per annum. All other borrowings are on a floating rate basis at either bank prime lending rates or short-term inter-bank offer rates. 60% (at 31st March 2000: 55%) of the Group's borrowings were of secured.

The Group's gearing ratio at 30th September 2000 was 0.85 (at 31st March 2000: 0.92), which was calculated based on the Group's borrowings of HK$619 million (at 31st March 2000: HK$665 million) and the shareholders' funds of HK$725 million (at 31st March 2000: HK$725 million.)

Additional banking facilities net of repayment upon refinancing during the period amounted to HK$123 million. The additional banking facilities were utilised for investment in new retail outlets and working capital. Net cash inflow from disposal of land and building and investment properties during the period amounted to HK$44 million.

After 30th September 2000, Notes amounting to SFr 23.3 million were repurchased at an average price of 90%. The Notes outstanding as of the reporting date (SFr 29.4 million) will be due for redemption on 31st March 2001, and the currency exposure has been fully hedged at an average exchange rate of HK$4.525 to SFr 1.

The Group does not engage in speculative derivative trading.

CAPITAL STRUCTURE OF THE GROUP

There was no change in the capital structure of the Group during the period.

SIGNIFICANT INVESTMENTS HELD

Stelux House is fully leased and contributes stable rental income to the Group.

CHANGES IN THE COMPOSITION OF THE ENTERPRISE DURING THE INTERIM PERIOD

There was no change in the composition of the Group during the interim period.

NUMBER AND REMUNERATION OF EMPLOYEES, REMUNERATION POLICIES, BONUS AND SHARE OPTION SCHEMES AND TRAINING SCHEMES

The Group's remuneration policies are reviewed on a regular basis and remuneration packages are in line with market practices in the relevant countries where the Group operates. As of 30th September 2000, the Group had 1814 employees. Details of the outstanding share options were disclosed in the Annual Report 2000.

DETAILS OF THE CHARGES ON GROUP ASSETS

At 30th September 2000, certain of the Group's land and buildings amounting to HK$231,088,000 (at 31st March 2000: HK$285,373,000) and investment properties amounting to HK$565,037,000 (at 31st March 2000: HK$604,000,000) were pledged to secure banking facilities granted to the Group.

PURCHASE, SALES OR REDEMPTION OF LISTED SECURITIES

During the period, there was no purchase, sale or redemption by the Company, or any of its subsidiary companies, of the Company's listed securities except that a wholly owned subsidiary company had repurchased Swiss Francs 6.2 million of the unlisted Swiss Francs Convertible Notes issued by the same subsidiary as follows:

                                Nominal amount
Issuer           Description       repurchased   Consideration paid
------           -----------    --------------   ------------------
Stelux Holdings  1.75 percent      Swiss Francs  Swiss Francs
  Limited          Swiss Francs      6,200,000     5,434,000
                   125,000,000                     (average of 88 per cent
                   Convertible                      of nominal value)
                   Notes due 2001

DIRECTORS' INTERESTS

As at 30th September 2000, the interests of the directors and their associates in the shares and options of the Company and its associated corporations as recorded in the register maintained under section 29 of the Securities (Disclosure of Interests) Ordinance ("SDI Ordinance") were as follows:-

(a) The Company - Ordinary shares

                                              Number of shares
                       ------------------------------------------------------------
                         Personal          Family        Corporate
                        interests       interests        interests            Total
                       ----------     -----------      -----------      -----------
Mr Wong Chue Meng      12,114,080     527,570,666(1)   609,471,959(1)   630,716,964*
Mr Wong Chong Po        3,600,000               -      518,439,741(2)   522,039,741
Mr Joseph C. C. Wong    5,077,211          10,000                -        5,087,211
Mr Sakorn Kanjanapas      391,056               -                -          391,056

(b) The Company - Number of options to subscribe for ordinary shares of HK$0.1 each

                                                 Number of options
                          ------------------------------------------------------------
                            Personal       Family        Corporate
                           interests    interests        interests               Total
                          ----------    ---------        ---------          ----------
Mr Joseph C. C. Wong      11,000,000            -                -          11,000,000
Mr Chu Kai Wah, Anthony    3,000,000            -                -           3,000,000
Mr Lee Shu Chung, Stan     3,000,000            -                -           3,000,000
Mrs Sudarat Sagarino       3,000,000            -                -           3,000,000
Mr Wong Yuk Woon           3,000,000            -                -           3,000,000

(c) The Company - Swiss Francs Convertible Notes due 2001

                                                 Amount of notes
                       ---------------------------------------------------------------
                            Personal       Family        Corporate
                           interests    interests        interests               Total
                       -------------    ---------        ---------       -------------
Mr Joseph C. C. Wong   SFr 3,000,000            -                -       SFr 3,000,000

(d) Subsidiary companies


                                                Number of shares
                       ---------------------------------------------------------------
                            Personal       Family        Corporate
                           interests    interests        interests               Total
                       -------------    ---------        ---------             -------

(i) City Chain (Thailand) Company Limited - Preference shares (3) Mr Wong Chue Meng - - 208,800 208,800 Mr Wong Chong Po 200 - 208,800 209,000 Mr Joseph C. C. Wong 200 - 208,800 209,000 Mr Sakorn Kanjanapas 200 - 208,800 209,000

(ii) Stelux Watch (Thailand) Company Limited - Preference shares (4) Mr Wong Chong Po 600 - - 600 Mr Joseph C. C. Wong 600 - - 600 Mr Sakorn Kanjanapas 600 - - 600

(iii) Optical 88 (Thailand) Company Limited - Preference shares (5) Mr Wong Chue Meng - - 225,000 225,000 Mr Wong Chong Po 5,000 - 225,000 230,000 Mr Joseph C. C. Wong 5,000 - 225,000 230,000 Mr Sakorn Kanjanapas 5,000 - 225,000 230,000

* Total interests excluding duplication as explained in the respective notes.

By virtue of the SDI Ordinance and his interests in the ultimate holding company, Yee Hing Company Limited, Thong Sia Company Limited, Active Lights Company Limited and Yee Hing International Limited, Mr Wong Chue Meng is deemed to have family and corporate interests in the shares of the Company and its associated corporations at 30th September 2000 as follows:

(1) This includes the duplication of corporate interests of 518,439,741 shares through Yee Hing Company Limited, Active Lights Company Limited and Yee Hing International Limited in which Mr Wong Chue Meng is deemed to have both family and corporate interests.

By virtue of the SDI Ordinance, Mr Wong Chong Po is deemed to have corporate interests in the shares of the Company and its associated corporations at 30th September 2000 as follows:

(2) Mr Wong Chong Po has beneficial interests in Yee Hing Company Limited which has corporate interests in the Company.

By virtue of the SDI Ordinance and their family and corporate interests in the Company stated above, Mr Wong Chue Meng, Mr Wong Chong Po, Mr Joseph C.C. Wong and Mr Sakorn Kanjanapas are deemed to have corporate interests in City Chain (Thailand) Company Limited at 30th September 2000 as follows:

(3) City Chain (Thailand) Company Limited is deemed to be a wholly owned subsidiary company of the Company as all its ordinary shares carrying voting rights are held by a wholly owned subsidiary of the Company. The interests of these directors in the ordinary shares of City Chain (Thailand) Company Limited are therefore equivalent to their respective personal, family and corporate interests in the Company. The preference shares held by certain directors represent preference shares issued by City Chain (Thailand) Company Limited which do not carry any voting rights and which are not entitled to any profit sharing but are only entitled to annual fixed dividends.

By virtue of the SDI Ordinance and their family and corporate interests in the Company stated above, Mr Wong Chong Po, Mr Joseph C.C. Wong and Mr Sakorn Kanjanapas are deemed to have corporate interests in Stelux Watch (Thailand) Company Limited at 30th September 2000 as follows:

(4) Stelux Watch (Thailand) Company Limited is deemed to be a wholly owned subsidiary company of the Company as all its ordinary shares carrying voting rights are held by a wholly owned subsidiary of the Company. The interests of these directors in the ordinary shares of Stelux Watch (Thailand) Company Limited are therefore equivalent to their respective personal, family and corporate interests in the Company. The preference shares held by certain directors represent preference shares issued by Stelux Watch (Thailand) Company Limited which do not carry any voting rights and which are not entitled to any profit sharing but are only entitled to annual fixed dividends.

By virtue of the SDI Ordinance and their family and corporate interests in the Company stated above, Mr Wong Chue Meng, Mr Wong Chong Po, Mr Joseph C.C. Wong and Mr Sakorn Kanjanapas are deemed to have corporate interests in Optical 88 (Thailand) Company Limited at 30th September 2000 as follows:

(5) Optical 88 (Thailand) Company Limited is deemed to be a wholly owned subsidiary company of the Company as all its ordinary shares carrying voting rights are held by a wholly owned subsidiary of the Company. The interests of these directors in the ordinary shares of Optical 88 (Thailand) Company Limited are therefore equivalent to their respective personal, family and corporate interests in the Company. The preference shares held by certain directors represent preference shares issued by Optical 88 (Thailand) Company Limited which do not carry any voting rights and which are not entitled to any profit sharing but are only entitled to annual fixed dividends.

Save as disclosed above, none of the directors of the Company was interested in the shares, options and convertible notes of the Company or any of the Company's associated corporations as at 30th September 2000.

SUBSTANTIAL SHAREHOLDERS

Save as disclosed in Directors' Interests above, so far as the Directors are aware, there are no other parties which were, directly or indirectly, interested in 10 per cent or more of the nominal value of the share capital of the Company as at 30th September 2000 as recorded in the register required to be kept by the Company under section 16(1) of the SDI Ordinance.

CODE OF BEST PRACTICE

In the opinion of the Directors, the Company has complied with the Code of Best Practice as set out in Appendix 14 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the period except that the independent non-executive directors of the Company are not appointed for a specific term.

AUDIT COMMITTEE

The Audit Committee has reviewed with management the accounting principles and practices adopted by the Group and discussed the internal controls and financial reporting matters related to the preparation of the unaudited condensed financial statements for the six months ended 30th September 2000.



On behalf of the Board
Joseph C. C. Wong
Managing Director

HONG KONG, 21st December 2000


Source: STELUX Holdings International Limited
  • Interim Reports
  • Company's Index
  • irasia.com

  • © Copyright 1996-2022 irasia.com Ltd. All rights reserved.
    DISCLAIMER: irasia.com Ltd makes no guarantee as to the accuracy or completeness of any information provided on this website. Under no circumstances shall irasia.com Ltd be liable for damages resulting from the use of the information provided on this website.
    TRADEMARK & COPYRIGHT: All intellectual property rights subsisting in the contents of this website belong to irasia.com Ltd or have been lawfully licensed to irasia.com Ltd for use on this website. All rights under applicable laws are hereby reserved. Reproduction of this website in whole or in part without the express written permission of irasia.com Ltd is strictly prohibited.
    TERMS OF USE: Please read the Terms of Use governing the use of our website.