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enterpriseAsia plc - 2005 Interim Report
27 September 2005
CHAIRMAN'S STATEMENT
Interim Results for the six months ended 30 June 2005
enterpriseAsia plc (the ¡§Company¡¨) and its subsidiaries
recorded an unaudited consolidated loss of £81,325 for the
six months ended 30 June 2005 compared with a loss of
£165,389 in the corresponding period in 2004. |
Dividends
The directors are not recommending the payment of a
dividend for the period. |
Business Strategy
I am pleased to report significant progress in the first
six months of this year in our strategy to develop an
investment portfolio in the energy and environmental
sectors in southern China. In January 2005, our company
acquired an interest in a municipal solid waste
incineration power plant in Dongguan. The plant is owned
and operated by the Dongguan Bohai Environmental
Protection Resources Development Co. Ltd (¡§Bohai¡¨) and has
been functioning at planned capacity for the past 12
months. The results have been very encouraging and we are
already beginning to see that reflected in our Profit and
Loss Account. Such has been the initial success of this
investment that, in April of this year, our company raised
£420,000 in a private placing in order to invest in the
next phase of the Bohai plant development. Moreover, we
believe that the Bohai model (in terms of technical
configuration and operational management) is very capable
of being replicated elsewhere in southern China and that
this will present us with further investment
opportunities.
Very recently, we have acquired a small interest in an oil
fired generating plant in Dongguan. Whilst this plant has
been successfully operating since 1999, we are
particularly encouraged by their proposal to switch to
natural gas and we have been granted an option to invest
further in the plant once regulatory approvals for the
conversion have been received.
At the same time, we continue to explore other
opportunities in the sector within Guangdong Province and
I am very encouraged by the quality and scale of deals
which could be available to us over the coming months.
Copies of this report may be obtained by applying to the
registered office whose address is given at the end of
this statement. Copies can also be viewed on the company¡¦s
website (www.enterpriseasia.com.hk).
Davie Auyeung
Chairman
|
|
CONSOLIDATED PROFIT AND
LOSS ACCOUNT
|
|
|
Note
|
6 months
ended
30 June
2005
|
6 months
ended
30 June
2004
|
Year ended
31 December
2004
|
|
|
|
£
|
£
|
£
|
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
|
|
|
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,066
|
1,457
|
-
|
|
|
|
|
|
|
|
Administrative expenses
|
|
(118,930)
|
(181,066)
|
(380,479)
|
|
Impairment loss on
investments
|
|
-
|
-
|
(77,423)
|
|
Reversal of the provision
for doubtful debts
|
|
-
|
157
|
-
|
|
Amortization of negative
goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(118,930)
|
(179,444)
|
(457,902)
|
|
|
|
|
|
|
|
Gain on liquidation of
investment
|
|
-
|
-
|
60,331
|
|
Other operating income
|
|
6,628
|
5,080
|
4,202
|
|
|
|
|
|
|
|
Operating loss
|
|
(85,236)
|
(174,364)
|
(393,369)
|
|
|
|
|
|
|
|
Other interest receivable
and similar income
|
|
|
|
|
|
|
|
|
|
|
|
Loss on ordinary
activities before taxation
|
|
(81,325)
|
(169,545)
|
(381,893)
|
|
|
|
|
|
|
|
Tax on loss on ordinary
activities
|
|
|
|
|
|
|
|
|
|
|
|
Loss on ordinary
activities after taxation
|
|
(81,325)
|
(169,545)
|
(381,893)
|
|
|
|
|
|
|
|
Minority interest
|
|
|
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted loss
per share (pence)
|
3
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET |
|
|
Note
|
As at
30 June
2005
|
|
As at
30 June
2004
|
|
As at
31 December
2004
|
|
|
|
£
|
|
|
|
£
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(audited)
|
|
¡@
|
|
|
|
|
|
|
|
Intangible assets
|
|
-
|
|
(498)
|
|
-
|
|
Negative
goodwill
|
|
-
|
|
(498)
|
|
-
|
|
|
|
|
|
|
|
|
|
Fixed assets
|
|
|
|
|
|
|
|
Tangible assets
|
|
1,381
|
|
15,170
|
|
1,588
|
|
Investments
|
|
512,025
|
|
152,025
|
|
152,025
|
|
|
|
|
|
|
|
|
|
|
|
513,406
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|
167,195
|
|
153,613
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Investments
|
|
-
|
|
1,275,092
|
|
-
|
|
Debtors
|
|
39,969
|
|
32,314
|
|
20,705
|
|
Cash at bank and in hand
|
|
646,589
|
|
744,773
|
|
480,044
|
|
|
|
|
|
|
|
|
|
|
|
686,558
|
|
2,052,179
|
|
500,749
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within
one year
|
|
(46,310)
|
|
(1,405,214)
|
|
(55,383)
|
|
|
|
|
|
|
|
|
|
Net current assets
|
|
640,248
|
|
646,965
|
|
445,366
|
|
|
|
|
|
|
|
|
|
Net assets
|
|
1,153,654
|
|
813,662
|
|
598,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Called up share capital
|
|
29,740
|
|
2,345,985
|
|
11,980
|
|
Share premium account
|
|
618,240
|
|
9,175,770
|
|
-
|
|
Profit and loss account
|
5
|
505,674
|
|
(10,756,272)
|
|
586,999
|
|
Minority interest
|
|
-
|
|
(1,821)
|
|
-
|
|
|
|
|
|
|
|
|
|
Shareholders¡¦ funds ¡V
equity interests
|
6
|
1,153,654
|
|
813,662
|
|
598,979
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED CASH FLOW STATEMENT |
|
|
6 months
ended
30 June
2005
|
6 months
ended
30 June
2004
|
Year ended
31 December
2004
|
|
|
£
|
£
|
£
|
|
|
(unaudited)
|
(unaudited)
|
(audited)
|
|
Net cash outflow from
operating activities
|
|
|
|
|
Operating loss
|
(85,236)
|
(174,364)
|
(393,369)
|
|
Deprecation of tangible
assets
|
336
|
2,962
|
3,384
|
|
Impairment loss
|
-
|
-
|
77,423
|
|
Reversal of the provision
for doubtful debts
|
-
|
(157)
|
-
|
|
Amortization of negative
goodwill
|
-
|
(8)
|
-
|
|
Gain on liquidation of
investment
|
-
|
-
|
(60,331)
|
|
(Increase)/decrease in
debtors
|
(19,264)
|
21,481
|
19,031
|
|
(Decrease)/increase in
creditors within one year
|
(9,073)
|
13,518
|
16,477
|
|
|
|
|
|
|
Net cash outflow from operating
activities
|
|
|
|
|
|
|
|
|
|
Returns on investments
and servicing of finance
|
|
|
|
|
Bank interest received
|
3,198
|
4,819
|
11,476
|
|
Other interest received
|
713
|
-
|
-
|
|
Profit on foreign exchange
|
-
|
-
|
435
|
|
|
|
|
|
|
Net cash inflow for
returns on investments and servicing of finance
|
|
|
|
|
|
|
|
|
|
Capital expenditure and
financial investments
|
|
|
|
|
Acquisition of subsidiaries
|
-
|
(3,949)
|
-
|
|
Payments to acquire tangible
assets
|
(129)
|
(2,541)
|
(71)
|
|
Payments to acquire fixed
asset investments
|
(144,000)
|
-
|
-
|
|
Payments to acquire current
asset investments
|
-
|
-
|
(8,837)
|
|
Loan to an investee company
|
|
|
|
|
|
|
|
|
|
Net cash outflow for capital expenditure
|
|
|
|
|
|
|
|
|
|
Net cash outflow before
management of liquid resources and financing
|
|
|
|
|
|
|
|
|
|
Financing
|
|
|
|
|
Issue of share capital
|
|
|
|
|
|
|
|
|
|
Net cash inflow from financing
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
in cash in the period
|
|
|
|
|
|
|
|
|
|
Reconciliation of net
cash flow to movement in funds
|
|
|
|
|
Increase/(decrease) in cash
in the period
|
|
|
|
|
|
|
|
|
|
Movement in net funds in the
period
|
166,545
|
(138,239)
|
(402,968)
|
|
Opening net funds
|
|
|
|
|
|
|
|
|
|
Closing net funds
|
|
|
|
|
INTERIM
ANNOUNCEMENT - NOTES
-
Basis of preparation
This interim statement has been prepared on the basis of
accounting policies set out in the Group financial
statements for the year ended 31 December 2004.
The information relating to the six month periods ended
30 June 2004 and 30 June 2005 is unaudited. The
information relating to the year ended 31 December 2004
is extracted from the audited accounts of the Company
which have been filed at Companies House and on which
the auditors issued an unqualified opinion.
¡@
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The above financial information does not constitute
statutory accounts within the meaning of Section 240
Companies Act 1985.
¡@
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Loss per share is based on the weighted average number
of shares in issue during the period ended 30 June 2005
of 2,125,990 (31 December 2004: 1,197,490; 30 June 2004:
1,197,490). The weighted average number of shares in
issue used in the basic loss per share calculation for
the period ended 30 June 2004 has been restated to
reflect the effect of the capital reorganization during
2004, which is deemed to have been completed on 1
January 2004.
¡@
-
Post Balance Sheet Event
Subsequent to the balance sheet date, the Group acquired
a 0.24% entitlement to the profit sharing of Dongguan
Houjie Power Co. Ltd. at a consideration satisfied by
the issuance of 142,857 new ordinary shares of the
Company to Try On Limited, a company connected with the
father of a director. This issue of shares give Try On
Limited a 48.9% holding in the company.
¡@
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Profit and loss account
|
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|
|
Six months
|
Six months
|
Year
|
|
|
Ended
|
Ended
|
Ended
|
|
|
30 June
|
30 June
|
31 December
|
|
|
2005
|
2004
|
2004
|
|
|
£
|
£
|
£
|
|
|
|
|
|
|
Opening balance
|
586,999
|
(10,590,883)
|
(10,590,883)
|
|
Retained loss for the period
|
(81,325)
|
(165,389)
|
(381,893)
|
|
Capital reorganization
|
-
|
-
|
11,559,775
|
|
|
___________
|
____________
|
___________
|
|
|
505,674
|
(10,756,272)
|
586,999
|
|
|
___________
|
____________
|
___________
|
-
Reconciliation of movements in shareholders¡¦ funds
|
(Unaudited)
|
(Unaudited)
|
(Audited) |
|
Six
months |
Six
months
|
Year
|
|
Ended |
Ended |
Ended |
|
30
June |
30
June |
31
December
|
|
2005 |
2004 |
2004 |
|
£ |
£ |
£ |
|
|
|
|
|
Retained loss for
the period |
(81,325) |
(165,389)
|
(381,893)
|
|
Issue of shares |
636,000 |
- |
- |
|
Minority interests |
- |
(1,821) |
- |
|
|
|
|
|
Net increase/
(decrease) in shareholders’ funds
|
554,675 |
(167,210) |
(381,893) |
|
Opening shareholders’ funds |
598,979 |
980,872 |
980,872 |
|
Closing
shareholders’ funds |
1,153,654 |
813,662 |
598,979 |
|
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¡@ |
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INDEPENDENT REVIEW REPORT |
Introduction
We have been instructed by the company to review the
financial information for the six months ended 30 June
2005 set out above and we have read the other information
contained in the interim report for any apparent
misstatements or material inconsistencies with the
financial information.
Directors¡¦ responsibilities
The interim report, including the financial information
contained therein, is the responsibility of, and has been
approved by the directors. The Listing Rules of the
Financial Services Authority require that the accounting
policies and presentation applied to the interim figures
should be consistent with those applied in preparing the
preceding annual accounts except where changes, and the
reason for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance
contained in Bulletin 1999/4 issued by the Auditing
Practices Board. A review consists principally of making
enquiries of management and applying analytical procedures
to the financial information and underlying financial
data, and based thereon, assessing whether the accounting
policies and presentation have been consistently applied
unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of
assets, liabilities and transactions. It is substantially
less in scope than an audit performed in accordance with
Auditing Standards and therefore provides a lower level of
assurance than an audit. Accordingly we do not express an
audit opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any
material modifications that should be made to the
financial information as presented for the six months
ended 30 June 2005.
MRI Moores Rowland LLP
Chartered Accountants
Registered Auditor |
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