Change in accounting boosts Lai Sun profit

All five members in the Lai Sun Group have managed to record positive earnings in their latest results, thanks to revaluation gains under the new accounting system.

Property arm Lai Sun Development posted a net profit of $231.37 million, or two cents per share, for the six months to the end of January. This compared with a loss of $1.17 billion in the same period last year.

The developer said $178.36 million came from the non-cash revaluation gain of its investment properties, while $37.49 million was from a gain on the cancellation of bond payables.

Earnings at Crocodile Garments, the group's property investment and garments manufacturing arm, soared 632.3 per cent year on year to $132.77 million, or 21.51 cents per share.

The increase stemmed largely from a $146.59 million contribution from a revaluation on investment properties.

Under HKAS40 of the new accounting rules, listed companies are required to book fair value changes in their investment properties on their income statements.

Meanwhile, the group's media and satellite television arm, eSun Holdings, also saw a net profit of $210.46 million, or 29.35 cents per share, for the year to December last year. It lost $145.51 million in 2004.

However, the firm's auditors gave a qualified opinion to the annual results, saying they were unable to obtain sufficient evidence relating to $187.19 million in film rights carrying value last year.

Lai Sun Group's mainland development arm, Lai Fung Holdings, achieved a 61.37 per cent increase in its interim earnings at $69.23 million, or 1.18 cents per share.

Parent Lai Sun Garment (International) said profit fell 61.7 per cent year on year to $99.64 million, or six cents per share, for the six months to January. This included a $158.8 million gain on investment properties.