08:45 NIPPON ASIA INV<00603>&<02970> - Results Announcement (2) The early adoption of HKAS 31 and HKAS-INT 13 has resulted in a change in the accounting policy for the Group's interests in jointly controlled entities. Prior to the adoption of HKAS 31, the Group's interests in jointly controlled entities are stated in the consolidated balance sheet at the Group's share of net assets, less any impairment losses. The Group's share of the post-acquisition results of its jointly controlled entities is included in the consolidated income statement. In accordance with the provisions of HKAS 31, interests in jointly controlled entities are accounted for by proportionate consolidation. Share of jointly controlled entities' individual income and expenses, assets and liabilities are combined in the Group's financial statements on a line by line basis. In the absence of any specific transitional requirements in HKAS 31, the new accounting policy has been applied retrospectively. The comparative information for the period ended 31 January 2004 have been restated to conform to the new policy. The effect of the change in this accounting policy on the consolidated financial statements for the period ended 31 January 2005 is the increase of non-current assets, current assets and current liabilities as at 31 January 2005 by HK$128 million, HK$79 million and HK$37 million respectively, the increase of non-current assets, current assets and current liabilities as at 31 July 2004 by HK$ 125 million, HK$85 million and HK$49 respectively, and there is no impact on the loss for the period ended 31 January 2005 and 2004 and the retained earnings as at 1 August 2003. 2. SEGMENT INFORMATION The Group is principally engaged in investment in Internet, information technology and other activities, investment in natural gas business, and manufacture and trading of silicone rubber products. The operations involved in the manufacture and trading of silicone rubber products were discontinued during the period ended 31 January 2005. An analysis of the Group's segment revenues and segment results for the period by business and geographical segment is as follows: Continuing operations --------------------- Investment in Internet, information technology and other activities Natural gas business Six months ended 31 January 2005 HK$'000 2004 HK$'000 2005 HK$'000 2004 HK$'000 (Reclassified) (Reclassified) Segment revenue: Turnover - - 53,571 28,717 _________________________________________________________________________ Segment results (92,862) (34,229) 9,678 957 _________________________________________________________________________ Finance costs (569) (934) (1,539) (531) Amortization & impairment of goodwill (50) - - (51) Profit/(loss) before tax 8,139 375 _________________________________________________________________________ Tax (740) (112) _________________________________________________________________________ Profit/(loss) before minorty interests 7,399 263 _________________________________________________________________________ Minorty interests (1,867) (206) _________________________________________________________________________ Net profit/(loss) from ordinary activities attributable to shareholders 5,532 57 _________________________________________________________________________