13:19 MACAU SUCCESS<00487> - Results Announcement (2) The pro forma combined results of the Group for the years ended 30 September 2003 and 2004 include the results of the Company and its subsidiaries with effect from 1 October 2002 or since their respective dates of incorporation/establishment, where there is a shorter period. All significant transactions and balances among the companies comprising the Group have been eliminated on combination. Although the Group reorganization was not completed and, accordingly, the Group did not legally exist until 8 November 2004, in the opinion of the directors of the Company, the presentation of such supplementary pro forma combined financial statements prepared on the aforesaid basis is necessary to apprise the Company's shareholders of the Group's results and its state of affairs as a whole. The financial statements have been prepared in accordance with generally accepted accounting principles in Hong Kong, and comply with statements of standard accounting practice ("SSAP") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), the requirements of the Hong Kong Companies Ordinance and The Rules Governing the Listing of Securities (the "Listing Rules") on the Stock Exchange. The financial statements are prepared under the historical cost convention. In the current year, the Group has adopted, for the first time, SSAP 12 (revised) "Income taxes". The principal impact of the revision of this SSAP on these financial statements is that deferred tax assets and liabilities relating to the differences between capital allowances for tax purposes and depreciation for financial reporting purposes and other taxable and deductible temporary differences are generally fully provided for, whereas previously the deferred tax was recognised for timing differences only to the extent that it was probable that the deferred tax asset or liability would crystallise in the foreseeable future. The adoption of the revised SSAP 12 represents a change in accounting policy, which has been applied retrospectively so that the comparatives presented have been restated to conform to the changed policy. Opening accumulated losses at 1 October 2002 and 2003 have been increased by approximately HK$58,000 and reduced by approximately HK$20,000, respectively, which represent the unprovided net deferred tax liabilities and assets. This change has resulted in a recognition of deferred tax assets at 30 September 2003 of approximately HK$32,000. The profit for the year ended 30 September 2003 have been reduced by approximately HK$78,000. 2. TURNOVER The analysis of the Group's turnover by principal activities are as follows: Continuing operations Discontinuing operations 2004 2003 2004 2003 HK$'000 HK$'000 HK$'000 HK$'000 Turnover Charter income 32,707 - - - Travel agent service fee income 3,811 - - - Vessel management fee income 25,046 - - - Construction, equipment rental and services income - - 25,047 60,481 Retail business - - 105,345 56,357 --------- -------- --------- -------- 61,564 - 130,392 116,838 ========= ======== ========= ======== Consolidated 2004 2003 HK$'000 HK$'000 Turnover Charter income 32,707 - Travel agent service fee income 3,811 - Vessel management fee income 25,046 - Construction, equipment rental and services income 25,047 60,481 Retail business 105,345 56,357 ---------- --------- 191,956 116,838 ========== =========