Annual Report and Accounts
25 February 2003 - 6:00PM
UK Regulatory
RNS Number:8899H
CyberChina Holdings PLC
25 February 2003
CYBERCHINA HOLDINGS plc
REPORT FOR THE YEAR ENDING
31 OCTOBER 2002
* Consolidated loss for year of #258,925 (2001: loss of #236,806)
* Net asset value 0.4p per share (2001: 0.5p)
* Confident that our activities will be successful not only in the near
term but also in the long term.
* Final preparations for our first flotation candidate being made.
* Proposal to change company name to CYC Holdings plc
CHAIRMAN'S STATEMENT
The year to 31 October 2002 representing CyberChina's second full year of
operations, resulted in a consolidated loss of #258,925 (2001: loss of
#236,806). The net asset value at the year-end was 0.4p per share (2001: 0.5p
per share).
To everyone's certain knowledge world stock markets are now well into a bear
phase with the major markets now in a third year of decline. No market has been
spared this savage correction to the excesses of the previous six years. Chinese
stock markets have similarly seen their values halved in line with western
capital markets. However they have been further subject to governmental
exigencies. In recent years the authorities had been selling shares to the
public to reduce governmental ownership in (frequently financially challenged)
State Owned Enterprises. This policy worked well in a rising market but when
conditions reversed, the state's divestment plan created further selling
pressure in already weakened circumstances. Whilst this policy has now been
halted the damage to confidence had been inflicted. All these factors have
negatively impacted on capital raising for new companies. In some countries IPO
activity came to an abrupt halt, whilst in others it has dwindled to a trickle.
To raise new money in today's market is undeniably difficult, which presents us
with opportunities as well as obstacles.
CyberChina has moved with market pressures. We are confident that our activities
will be successful, not only in the near term but also in the long term. China's
GDP is expected to grow in 2003, for the ninth consecutive year. Estimates vary
from 7.5-9% depending on the researchers' opinion of the impact (depth and
duration) of the economic slowdown in the leading western economies. This
consensus reinforces your management's conviction that China is the country of
growth and exciting prospects.
Our business is to prepare Chinese companies for investment from western
economies and, where appropriate, subsequent listing, with your company
receiving its remuneration in fees from or shares and options in the enhanced
value investee company. This continues to be our principal focus, though we have
added an extra component to this strategy. We now seek to create additional
value in client companies by identifying and constructing trade alliances or
mergers & acquisitions with western companies in ancillary activities. In this
way we can build a stronger commercial base upon which a more financially robust
pre-flotation vehicle can be presented.
The final preparations of our first flotation candidate relating to ultra-sonic
detection technology are being made and it is anticipated that details of this
will be announced shortly after our Annual General Meeting. Additionally, we
have other candidate companies undergoing the due diligence process, and
announcements regarding these will be made in due course as and when
appropriate.
It is the view of your board that the name CyberChina does not reflect the
nature of our business. Accordingly a resolution to change the Company's name
to CYC Holdings plc will be put to the AGM.
Given the present status of your Company's operations and the financial results
for the year, your Directors are not recommending the payment of a dividend.
Yours sincerely,
The Viscount Torrington.
Chairman.
PROFIT AND LOSS ACCOUNT FOR THE YEAR TO
31 OCTOBER 2002
Year to 31 October 2002 Year to 31 October 2001
# #
OTHER OPERATING INCOME - 6,692
OPERATING EXPENSES (317,732) (313,508)
OPERATING LOSS (317,732) (306,816)
Interest payable (5) (258)
Interest receivable 58,812 70,268
LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (258,925) (236,806)
RETAINED LOSS FOR THE PERIOD #(258,925) #(236,806)
EARNINGS PER SHARE (0.08 p) (0.08 p)
The profit and loss account relates to continuing operations and contains all the gains and losses recognised in
the period. There are no discontinued operations.
The loss has been calculated on the historical cost basis and is the only movement in shareholders' funds for the
year.
CONSOLIDATED BALANCE SHEET AS AT 31 OCTOBER 2002
31 October 2002 31 October 2001
# # # #
FIXED ASSETS
Intangible assets - -
Tangible assets 1,432 1,178
1,432 1,178
CURRENT ASSETS
Investments 18,305 504,838
Debtors 47,947 15,125
Cash at bank and in hand 1,297,151 1,116,643
1,363,403 1,636,606
CREDITORS
Amounts falling due within one year (17,766) (31,790)
NET CURRENT ASSETS 1,345,637 1,604,816
NET ASSETS #1,347,069 #1,605,994
CAPITAL AND RESERVES
Called-up share capital 3,080,000 3,080,000
Share premium account 790,127 790,127
Profit and loss account (2,523,058) (2,264,133)
#1,347,069 #1,605,994
Approved by the Board on 10 February 2003
And signed on its behalf by:
M J McALISTER M D D LINDSAY
Director Director
CASHFLOW STATEMENT FOR YEAR TO 31 OCT0BER 2002
Year to 31 October Year to 31 October
2002 2001
# #
Net Cash inflow/(outflow) from
operating activities 181,325 (890,677)
Capital expenditure and financial investment
Purchase of tangible assets (817) (784)
Increase/(decrease) in cash during the period #180,508 #(891,461)
NOTE
Copies of the fully audited report and accounts can be obtained from Cyberchina Holdings plc, Hillyfields House,
Woodhill Lane, Shamley Green, Guildford, Surrey GU5 OSP or may be seen on the website: www.cyberchinaholdings.com
For further information please contact:
Michael Lindsay, finance director, on 07050 254825
Philip Parkes, Winningtons, on 0117 317 9477 or 07831 826789
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