Hong Kong Exchanges and Clearing Limited Investor Investment Service Centre Listed Companies Information PIONEER GLOBAL<00224> - Results Announcement Pioneer Global Group Limited announced on 20/7/2004: (stock code: 00224 ) Year end date: 31/3/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2003 from 1/4/2002 to 31/3/2004 to 31/3/2003 Note ('000 ) ('000 ) Turnover : 35,518 42,264 Profit/(Loss) from Operations : 16,986 11,333 Finance cost : (2,336) (2,692) Share of Profit/(Loss) of Associates : 12,079 (4,253) Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 21,866 2,598 % Change over Last Period : +741.6 % EPS/(LPS)-Basic (in dollars) : 0.0292 0.0035 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 21,866 2,598 Final Dividend : 1.0 cent NIL per Share (Specify if with other : (scrip dividend N/A options) with cash optiion) B/C Dates for Final Dividend : 30/8/2004 to 2/9/2004 bdi. Payable Date : 15/10/2004 B/C Dates for Annual General Meeting : 30/8/2004 to 2/9/2004 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1 BASIS OF PRESENTATION AND ACCOUNTING POLICIES The audited consolidated financial statements are prepared in accordance with Hong Kong Statements of Standard Accounting Practice. The accounting policies used in the preparation of the financial statements are consistent with those used in the annual financial statements for the year ended 31 March 2003, except that the Group has adopted the following new and revised SSAP which became effective on 1 April 2003. SSAP12 (Revised): Income taxes Under SSAP12 (Revised) , deferred tax liabilities and assets are recognised in respect of all temporary differences. Temporary differences are those differences between the carrying value of an asset or liability in the entity's balance sheet, and the "tax base" of that asset or liability; and the "tax base" of an asset or liability is the amount attributed to that asset or liability for tax purpose. Deferred tax liabilities and assets are calculated by applying the appropriate tax rate to temporary differences and tax losses. The adoption of SSAP 12 (Revised), represents a change of accounting policy, which has been applied retrospectively and the comparative figures have been restated accordingly. This change in accounting policy has resulted in prior period adjustment to the opening balance of equity as at 1 April 2003 which has been restated and decreased by HK$2,211,000 (1 April 2002 : HK$1,773,000). Certain comparative figures have been reclassified to conform to the current year's presentation. 2 SEGMENT INFORMATION Segment information is presented on a primary reporting basis by business segment. Business segments Property Investments 2004 2003 2004 2003 HK$'000 HK$'000 HK$'000 HK$'000 Segment turnover Company and subsidiaries 24,299 27,200 6,110 5,704 ======================================================== Segment result 8,896 8,981 5,741 5,496 Share of profits and (losses) of associates - Listed - - 7,017 7,891 - Unlisted 5,062 (12,144) - - Information Technology Consolidated 2004 2003 2004 2003 HK$'000 HK$'000 HK$'000 HK$'000 Segment turnover Company and subsidiaries 5,109 9,360 35,518 42,264 ====================================================== Segment result 543 (3,866) 15,180 10,611 Unallocated corporate expenses (1,587) (1,138) ----------------------- Operating profit 13,593 9,473 Share of profits and (losses) of associates - Listed - - 7,017 7,891 - Unlisted - - 5,062 (12,144) Finance costs (2,336) (2,692) Net profit on disposal of assets less impairment provisions 3,393 1,860 Taxation (3,645) (2,687) Minority interests (1,218) 897 ------------------------ Net profit 21,866 2,598 ======================== 3. TAXATION 2004 2003 Current Deferred Current Deferred taxation taxation Total taxation taxation Total HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Hong Kong Group 1,711 (62) 1,649 450 121 571 Overseas Group 6 - 6 306 - 306 Listed associate 1,311 277 1,588 1,498 312 1,810 Unlisted associate 326 76 402 - - - -------------------------------------------------------- 3,354 291 3,645 2,254 433 2,687 ======================================================== Hong Kong profits tax has been provided at the rate of 17.50% (2003 : 16%) on the estimated Hong Kong source assessable profits for the year. Overseas tax in respect of the Group and the associates has been provided at the applicable rates in the countries in which the tax is levied. 4 EARNINGS PER SHARE Earnings per share is calculated on profit attributable to shareholders amounting to HK$21,866,000 (31 March 2003: HK$2,598,000) and on 748,984,917 shares in issue during the year (31 March 2003 : on weighted average number of 749,036,972 shares in issue during the year). No diluted earnings per share have been presented for the years ended 31 March 2004 and 31 March 2003 as the exercised prices of the share options granted by the Company were higher than the fair value per share at the balance sheet date. 5 SUBSEQUENT EVENTS In May 2004, the Group entered into a joint venture with Morgan Stanley Real Estate Funds and PamFleet Investments Limited. The Group's investment was HK$39 million. The joint venture subsequently purchased 2 real properties, Paliburg Plaza and Kowloon City Plaza for investment purposes. Details of transaction were provided in a circular to shareholders dated 15 June 2004. In June 2004, the Group disposed an investment property - Unit D2, 17/F of Evergreen Villa, Hong Kong for HK$19.6 million. Details of transaction were provided in a circular to shareholders dated 28 June 2004.