Press Room
Unaudited preliminary results for the year ended 31 December 2008
Et-china, a leading travel services group in the fast growing region of South China, announces its preliminary results for the year ended 31 December 2008.
Highlights:
| Reported RMB | Reported GBP* | Y2007 Pro-Forma** |
Y2007 Pro-Forma |
|||
| 31 December 2008(Unaudited) | 31 December 2007 (Audited) | 31 December 2008(Unaudited) | 31 December 2007(Unaudited) | RMB (Unaudited) |
Reported GBP (Unaudited) |
|
| Revenue | 1,740.6m | 1,291.6m | 142.3m | 86.5m | 1,693.0m | 113.4m |
| Gross Profit | 184.6m | 114.6m | 15.1m | 7.7m | 156.7m | 10.5m |
| Result from operations | (49.7m) | (78.3m) | (4.1m) | (5.2m) | (76.3m) | (5.1m) |
| Net Loss**** | (81.8m) | (50.4 m) | (6.9m) | (3.4m) | (49.2m) | (3.2m) |
| Of which: Net finance (costs)/income*** | (41.3m) | 34.6m | (3.4m) | 2.3m | 35.9m | 2.4 m |
* Figures in GBP are for illustrative purposes only, the figures are translated using RMB: GBP 12.2303 to 1 (2008) and 14.9309 to 1 (2007) respectively. For the reason that the exchange rate of RMB to GBP fluctuated sharply during 2008 and 2007, investors are recommended to refer to the reported RMB figures for comparisons, or it may distort the company's performance when only relying on the reported GBP numbers.
** Pro-forma figures are for illustrative purposes only. They include the full year results of GZL rather than from the date of its acquisition on 26 April 2007. No adjustments have been made to any acquisition accounting entries. The pro-forma figures are un-audited.
*** Due to the fair value adjustment during the year on the Grandbuy shares held by GZL of some negative RMB 38.7 million, the net finance costs were RMB 41.3 million in 2008.
**** Net loss for 2008 was RMB 81.8 million, of which ETCI accounted for RMB 72.0 million and the minority interest of GZL approximately RMB 9.8 million.
Operating Summary
- GZL, ETC's package holiday division, achieved net revenues of RMB 1,683.5 million for the year ended 31 December, an increase of approximately 3% over 2007
- Et-china, serving the Frequent Independent Travel market, achieved net revenue of RMB 57.1 million (2007: RMB 65.2 million), including the 49% revenue share of its e-ticketing JV of RMB 15.3 million
- e-ticketing JV net revenue increased to RMB 31.2 million (2007: RMB 26.7 million)
Financial Summary
- Net finance costs impacted by a loss of RMB 38.7 million on the decrease of the fair value of GrandBuy shares held by GZL during 2008. The related deferred tax liabilities amounted to RMB 9.7 million had been reversed and credited to the income statement
- Additional depreciation and amortization arose on acquisition of GZL amounting to RMB 3.4 million
- The changes in fair value conversion of convertible loan notes contributed RMB 16.5 million profit to the net results
- The interest expenses on convertible loan notes was RMB 7.2 million
- Balance sheet strengthened; cash and cash equivalents at the end of 2008 was RMB 185.4 million (£18.9 million)
- On 31 December 2008, GZL signed a standby credit facility of RMB 2 billion with China Construction Bank. The business expansion and future integration of GZL Group was strongly supported by the local government
Successful GBP 5.5 million fundraising from Och-Ziff, Ellerston and LFG in May 2008.
The Group will publish and send to shareholders its 2008 Annual Report, including audited financial statements for the year ended 31 December 2008, by 30 June 2009.
Contact details for enquiries:
| Et-china.com International Holdings Limited | 0207 067 0700 |
| Matthew Ng, Chief Executive Officer | |
| Seymour Pierce, Nomad and Broker | 0207 107 8000 |
| Mark Percy Catherine Leftley |
|
| Weber Shandwick Financial | 0207 067 0700 |
| Terry Garrett Stephanie Badjonat John Moriarty |