Finance

The Company's paid-up share capital was increased slightly from the issue of new shares arising from the exercise of share options, and total reserves fell by $102.1 million.

Net tangible assets backing per share was $2.09, a decrease of 6.2% from the previous year's figure of $2.23.

FIVE-YEAR PROFIT RECORD

In 1998, the Group reported an attributable loss of $350.6 million. Profit contributions from continuing businesses, partial sale of Prudential Tower and the sale of an office building in Australia were insufficient to cover the provisions made for two leasehold residential developments and the Group’s freehold land bank.

The Group made a turnaround in 1999 and recorded a profit before extraordinary items of $78.7 million. This result included the initial profit from the Villa Verde project and a further profit contribution from Pebble Bay. Attributable profit was $152.3 million after including extraordinary gains of $73.6 million from the unwinding of the Group’s investments in three related companies.

Further progress was made in 2000. Group’s pre-tax profit reached $158.9 million, and attributable profit was $120.6 million. These results included the profit from Villa Verde and Pebble Bay, the maiden profit contributions from Caribbean at Keppel Bay and Freesia Woods condominium projects. In 2001, the Group incurred an attributable loss of $366.5 million. Higher earnings from Group’s office buildings and profit from the sale of Cluny Hill bungalow plots were insufficient to cover the provisions made for properties held for sale.

The Group returned to profitability in 2002 with an attributable profit of $94.3 million (excluding exceptional items) and $26.4 million (after exceptional items). There was further progressive profit recognition from the Caribbean at Keppel Bay and a write-back of provisions for Amaranda Gardens, Butterworth 8 and The Edgewater projects. In addition, initial profits had been taken up for the One Park Avenue condominium project in Shanghai.