Listed Company Information
 

ASIA ALLIANCE<00616> - Results Announcement

Asia Alliance Holdings Limited announced on 23/06/2005:
(stock code: 00616 )
Year end date: 31/03/2005
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2004    from 01/01/2003
                                     to 31/03/2005      to 31/03/2004
                               Note  ('000      )       ('000      )
Turnover                        3  : 53,662             5,083             
Profit/(Loss) from Operations  3,4 : (2,514)            (55,162)          
Finance cost                       : (424)              (1,960)           
Share of Profit/(Loss) of 
  Associates                       : N/A                (4)               
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                (72)              
Profit/(Loss) after Tax & MI       : 6,104              (57,737)          
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)    5  : 0.02               (0.97)            
         -Diluted (in dollars)  5  : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 6,104              (57,737)          
Final Dividend                     : Nil                Nil
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Final Dividend                   : N/A   
Payable Date                       : N/A
B/C Dates for (-)            
  General Meeting                  : N/A   
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   
  
Remarks:

1.      BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The consolidated financial statements for the current period cover the 
twelve month period ended 31 March 2005.  The corresponding amounts shown 
for the consolidated income statement, consolidated statement of changes 
in equity, consolidated cash flow statement and related notes cover a 
fifteen month period from 1 January 2003 to 31 March 2004 and therefore 
may not be comparable with amounts shown for the current period.  The 
period covered by the preceding consolidated financial statements was 
greater than twelve months because the directors of the Company determined 
to bring the balance sheet date in line with that of the controlling 
shareholder, Easyknit International Holdings Limited ("Easyknit").  No 
further changes to reporting dates are anticipated.

2.      POTENTIAL IMPACT ARISING FROM THE RECENTLY ISSUED ACCOUNTING 
STANDARDS

In 2004, the Hong Kong Institute of Certified Public Accountants issued a 
number of new or revised Hong Kong Accounting Standards and Hong Kong 
Financial Reporting Standards ("HKFRSs") (herein collectively referred to 
as "new HKFRSs") which are effective for accounting periods beginning on 
or after 1 January 2005 except for HKFRS 3 Business Combinations.  The 
Group has not early adopted these new HKFRSs in the financial statements 
for the year ended 31 March 2005.

HKFRS 3 is applicable to business combinations for which the agreement 
date is on or after 1 January 2005.  The Group has not entered into any 
business combination for which the agreement date is on or after 1 January 
2005.  Therefore, HKFRS 3 did not have any impact on the Group for the 
year ended 31 March 2005.

The Group has commenced considering the potential impact of the other new 
HKFRSs but is not yet in a position to determine whether these new HKFRSs 
would have a significant impact on how its results of operations and 
financial position are prepared and presented.  These new HKFRSs may 
result in changes in the future as to how the results and financial 
position are prepared and presented.
 
3.      BUSINESS AND GEOGRAPHICAL SEGMENTS
        
        For management purposes, the Group is currently organised into 
four main operating divisions -bleaching and dyeing, knitting, wireless 
communication business and communication solutions consultancy services.  
These divisions are the bases on which the Group reports its primary 
segment information.

Segment information about these businesses is presented below:

For the year ended 31 March 2005

Income statement
                                Communication
Bleaching        Wireless       solutions
and              communication  consultancy
dyeing  Knitting business       services     Eliminations    Consolidated
HK$'000 HK$'000  HK$'000        HK$'000      HK$'000         HK$'000

Turnover
  External      
53,218  444     -               -               -               53,662

Inter-segment
-       2,945   -               -               (2,945)         -   
_______ ______  ______          ______          ______          _______

Total   
53,218  3,389   -               -               (2,945)         53,662
_______ ______  ______          ______          ______          _______
_______ ______  ______          ______          ______          _______

Segment result
4,095   (2,370) 56              (11)            -               1,770
_______ ______  ______          ______          ______
_______ ______  ______          ______          ______

Interest income                                                 45
Unallocated corporate expenses                                  (4,329)
                                                                _______
Loss from operations                                            (2,514)
Gain on disposal of subsidiaries                                 9,042
        Finance costs                                             (424)
                                                                _______
Net profit for the year                                         6,104
                                                                _______


For the fifteen months ended 31 March 2004

Income statement

                Communication
Wireless        solutions
communication   consultancy     Internet
business        services        operations      Eliminations  Consolidated
------------    ----------      ----------      ------------  ------------
HK$'000         HK$'000         HK$'000         HK$'000         HK$'000

Turnover
3,982           1,101           -               -               5,083
______          ______          ______          ______          ______
______          ______          ______          ______          ______

Segment result  
(31,873)        (2,856)         (304)           -               (35,033)
______          ______          ______          ______
______          ______          ______          ______

Interest income                                                 70
Allowance for amounts due from
 associates     
                (317)                                           (317)
Unallocated corporate expenses                                  (19,882)
                                                                ________

Loss from operations                                            (55,162)
Loss on disposal of subsidiaries                                   (539)
Finance costs                                                    (1,960)
Share of results of an associate
                                 (4)                                (4)
Share of results of jointly
  controlled 
  entities
(72)                                                               (72)
                                                                _________

Net loss for the period                                         (57,737)
                                                                ________
                                                                ________


4.      LOSS FROM OPERATIONS include the following items:

                                                1.4.2004        1.1.2003
                                                to              to
                                                31.3.2005       31.3.2004
                                                HK$'000         HK$'000
        
Write-back of allowance (allowance) for
  doubtful debts                                17              (1,155)
Allowance for a loan to Acme Landis
  Operations Holdings Limited, a former
  subsidiary                                    (403)           (3,297)
Impairment loss recognised in respect of
  property, plant and equipment                 -               (9,971)
Impairment loss recognised in respect of
  long term investments                         -               (3,900) 
Allowance for amounts due from associates       -               (317) 


5.      EARNINGS (LOSS) PER SHARE

The calculation of the basic earnings (loss) per share is based on the 
following data:

                                                1.4.2004        1.1.2003
                                                to              to
                                                31.3.2005       31.3.2004
                                                HK$'000         HK$'000

Profit (loss) for the purposes of basic earnings
  (loss) per share                              6,104           (57,737)
                                                ______          ________
                                                ______          ________

                                                1.4.2004        1.1.2003
                                                to              to
                                                31.3.2005       31.3.2004
Number of shares
Number/weighted average number of
 shares for the purposes
 of basic earnings (loss) per share             357,006,840     59,376,993
                                                ___________     __________
                                                ___________     __________


The denominator for the purposes of calculating basic loss per share for 
the fifteen months ended 31 March 2004 has been adjusted to reflect the 
consolidation of shares in September 2003 on the basis that forty shares 
were consolidated into one share and the rights issue of shares in 
September 2003 and March 2004.

No diluted earnings per share has been presented for the year ended 31 
March 2005 as the exercise prices of the Company's outstanding share 
options were higher than the average market price for the year.

No diluted loss per share was presented for the fifteen months ended 31 
March 2004 as the exercise of the Company's outstanding share options 
would reduce the loss per share for that period.