08:39 LAI SUN DEV<00488> - Results Announcement (2) Upon completion of the Bonds Settlement, the Group settled its indebtedness owed to the Bondholders including the outstanding principal amount, accrued outstanding interest, redemption premium in aggregate of HK$2,279 million and an agreed settlement premium of HK$257 million. The total amount due to the Bondholders was settled by: (i) cash repayments of approximately US$38 million (equivalent to approximately HK$300 million) which were made to the Bondholders on about 18th October, 2004; (ii) HK$266,058,100 zero coupon guaranteed secured A Bonds due 2005 ( the "A Bonds") issued by Lai Sun International Finance (2004A) Limited, a wholly-owned subsidiary of the Company; (iii) HK$70,059,100 zero coupon guaranteed secured B Bonds due 2005 (the "B Bonds") issued by Lai Sun International Finance (2004B), a wholly-owned subsidiary of the Company; and (iv) 3,800,040,000 ordinary shares of the Company at a price of HK$0.50 per share. Upon completion of the eSun Debt Settlement, the Group settled the principal amount of the Debt of HK$1,500 million and an agreed settlement premium of approximately HK$1,345 million. The total amount due to eSun was settled by: (i) a cash repayment of HK$20,000,000 which was made to the eSun Group on 18th October, 2004; (ii) a 5-year secured interest-bearing term loan in the principal amount of HK$225,000,000 owed by Furama Hotel Enterprises Limited, a wholly-owned subsidiary of the Company, to GPEL; and (iii) 5,200,000,000 ordinary shares of the Company at a price of HK$0.50 per share. The Group incurred a loss arising from the Settlements of HK$1,484 million which comprised (i) an agreed premium of HK$257 million pursuant to the Bonds Settlement and (ii) an agreed premium of HK$1,345 million pursuant to the eSun Debt Settlement of which was partially offset by the write back of accrued overdue interest on the Debt of HK$119 million as such overdue interest was waived by eSun upon completion of the Settlement. Following the completion of the Settlements, the Group also managed to refinance all major bank and other borrowings to medium and long term loans as necessary. Upon completion of the Settlements, the Group turned around from a deficiency in asset position to a net asset position. As at 31st January, 2005 the Group had consolidated net assets of HK$3,345 million (as at 31st July, 2004: consolidated deficiency in assets of HK$116 million). The Group' has also turned around from a current liability position of from HK$5,664 million as at 31st July, 2004 to a net current asset position of HK$33 million as at 31st January, 2005. 2. LOSS PER SHARE The calculation of basic loss per share is based on the net loss from ordinary activities attributable to shareholders for the period of HK$1,255,969,000 (2004: HK$167,120,000) and the weighted average number of 6,485,145,000 (2004: 3,746,002,000) ordinary shares in issue during the period. Diluted loss per share amounts for the current and prior periods have not been disclosed, as no diluting event existed during both periods. 3. INTERESTS IN ASSOCIATES Included in the Group's interests in associates as at 31st January, 2005 is the Group's share of net assets of eSun and its subsidiaries (the "eSun Group") of HK$779,048,000. As at 31st December, 2004, the eSun Group recorded consolidated net current liabilities of HK$207 million (2003: HK$172 million), consolidated accumulated losses of HK$2,284 million (2003: HK$2,336 million) and consolidated net assets of HK$1,831 million (2003: HK$1,779 million). Included in the net current liabilities of HK$207 million were bank loans of HK$21 million, loans from directors of HK$10 million and other loans of HK$150 million (collectively, the "Financial Creditors"), all of which are due for repayment within the next 12 months from the balance sheet date. In order to improve the eSun Group's working capital position, profitability and operations, the eSun Group has adopted and continue to implement the following measures: (a) the eSun Group continues to seek ongoing support from its Financial Creditors, and to explore opportunities for different sources of financing to strengthen the Group's working capital position; and (b) the eSun Group continues to implement measures to tighten cost controls over various general and administrative expenses and to attain positive and profitable cash flow operations.