UNAUDITED REVIEWED CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE THREE-MONTH PERIODS ENDED JUNE 30, 1998 AND 1997 In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 REVENUES (Note 4) Rental and service income 478,997 435,815 307,158 337,353 Food and beverage income 65,164 70,886 - - Interest income 91,249 75,764 101,339 65,671 Other income Management fee 4,073 11,817 14,214 11,451 Others 26,201 27,870 10,994 19,953 Total Revenues 665,684 622,152 433,705 434,428 COSTS AND EXPENSES Cost of rental and service (Note 4) 247,243 176,591 111,659 106,715 Cost of food and beverage (Note 4) 55,009 53,626 - - Equity in net loss (income) of subsidiaries - - 33,193 (24,434) Operating and administrative expenses (Note 4) 81,974 68,728 55,154 57,143 Interest expense 142,551 65,213 84,889 48,691 Directors remuneration 1,854 2,584 1,854 2,584 Other expenses Loss on declining in value of investment 251,486 9,542 251,486 9,542 Doubtful loan loss (Note 4) 43,899 - 43,899 - Total Costs and Expenses 824,016 376,284 582,134 200,241 Income (loss) before income tax and minority interest (158,332) 245,868 (148,429) 234,187 Income tax (Note 5) 33,859 (81,967) 34,506 (71,518) Income (loss) before minority interest (124,473) 163,901 (113,923) 162,669 Minority interest in loss (income) in subsidiaries 10,550 (1,232) - - Income (loss) from operations (113,923) 162,669 (113,923) 162,669 Loss on exchange rate (Note 1) (162,037) (152,622) (162,037) (152,622) UNAUDITED REVIEWED - 2 - In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 NET INCOME (LOSS) (275,960) 10,047 (275,960) 10,047 Earnings (Loss) per Share (Baht) Income (loss) from operations (1.14) 1.63 (1.14) 1.63 Loss on exchange rate (1.62) (1.53) (1.62) (1.53) Net income (loss) (2.76) 0.10 (2.76) 0.10 See accompanying Notes to Interim Financial Statements. (With Mr. Methee Ratanasrimethas report dated July 24, 1998) UNAUDITED REVIEWED CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES STATEMENTS OF INCOME FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 1998 AND 1997 In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 REVENUES (Note 4) Rental and service income 958,457 895,318 614,837 678,226 Food and beverage income 121,901 131,000 - - Interest income 172,928 145,471 191,381 136,152 Other income Management fee 5,932 21,237 21,660 19,743 Others 62,524 49,682 22,936 34,708 Total Revenues 1,321,742 1,242,708 850,814 868,829 COSTS AND EXPENSES Cost of rental and service (Note 4) 482,278 359,392 214,509 209,970 Cost of food and beverage (Note 4) 98,340 101,372 - - Equity in net loss (income) of subsidiaries - - 49,941 (43,450) Operating and administrative expenses (Note 4) 171,569 170,523 115,033 146,310 Interest expense 273,192 124,759 160,817 92,868 Directors remuneration 3,988 4,717 3,988 4,717 Other expenses Loss on declining in value of investment 251,486 15,496 251,486 15,496 Doubtful loan loss (Note 4) 43,899 - 43,899 - Total Costs and Expenses 1,324,752 776,259 839,673 425,911 Income (loss) before income tax and minority interest (3,010) 466,449 11,141 442,918 Income tax (Note 5) (26,014) (149,981) (18,456) (128,461) Income (loss) before minority interest (29,024) 316,468 (7,315) 314,457 Minority interest in loss (income) in subsidiaries 21,709 (2,011) - - Income (loss) from operations (7,315) 314,457 (7,315) 314,457 Gain (loss) on exchange rate (Note 1) 205,699 (152,622) 205,699 (152,622) Income before cumulative effect of accounting change 198,384 161,835 198,384 161,835 UNAUDITED REVIEWED - 2 - In Thousand Baht Consolidated For the Company 1998 1997 1998 1997 Cumulative effect of accounting change (Note 5) - 5,503 - 5,503 NET INCOME 198,384 167,338 198,384 167,338 Earnings (Loss) per Share (Baht) Primary Earnings (Loss) per Share Income (loss) from operations (0.07) 3.15 (0.07) 3.15 Gain (loss) on exchange rate 2.05 (1.53) 2.05 (1.53) Cumulative effect of accounting change (Note 5) - 0.05 - 0.05 Net income 1.98 1.67 1.98 1.67 Fully Diluted Earnings per Share Net income (Note 3) 0.66 0.66 See accompanying Notes to Interim Financial Statements. (With Mr. Methee Ratanasrimethas report dated July 24, 1998) CENTRAL PATTANA PUBLIC COMPANY LIMITED AND SUBSIDIARIES NOTES TO INTERIM FINANCIAL STATEMENTS JUNE 30, 1998 AND 1997 1. EFFECT OF THE ECONOMIC CRISIS On July 2, 1997, the Ministry of Finance announced a change in the foreign currency exchange system from the pegged basket system to the managed float system. For conservatism, the Company recorded liabilities in foreign currency, which are not covered by forward contracts as of June 30, 1997, based on the referenced exchange rates announced by the Bank of Thailand as of July 2, 1997. Consequently, liabilities in foreign currency increased by approximately Baht 218 million (net of the related income tax approximately Baht 65 million), which is presented separately as extraordinary item in the statements of income. The accompanying interim financial statements for the three-month and six-month periods ended June 30, 1998, include the effects of the economic crisis on the Company and subsidiaries to the extent they are known and can be estimated. The economic crisis have been affected from the announcement by the Ministry of Finance on July 2, 1997, relative to the change in foreign currency exchange from the pegged basket system to the managed float system and currency volatility. After the announcement, the effects of which will be continued for the foreseeable future. As a result, there are uncertainties that might affect future operations of the Company and subsidiaries in 1998. The ultimate outcome of this matter cannot presently be determined. The interim financial statements do not include any adjustments that might result from these uncertainties. Related effects will be reported in the financial statements as they become known and estimable. The Company has gain on exchange rate for the six-month period ended June 30, 1998, amounting to approximately Baht 206 million (net of the related income tax approximately Baht 88 million) and loss on exchange rate for the three-month period ended June 30, 1998, amounting to approximately Baht 162 million (net of the related income tax approximately Baht 69 million). The Company presented these separately in the statements of income. - 2 - 2. PRINCIPLES OF CONSOLIDATION The consolidated interim financial statements include the accounts of Central Pattana Public Company Limited and the following subsidiaries: Direct and Indirect Percentage of Holdings 1998 1997 Central Realty Service Co., Ltd. 99.99 99.99 Lang Suan Realty Co., Ltd. 99.99 99.99 Central Food Avenue Co., Ltd. 99.99 99.99 Focus Holding Co., Ltd. 99.99 99.99 Central Pattana Chiang Mai Co., Ltd. 99.99 99.99 Central Pattana Ko Raj Co., Ltd. 99.99 99.99 Food Novelties Co., Ltd. 99.99 - Coffee Partners Co., Ltd. 99.93 - Central Pattana Khon Kaen Co., Ltd. 78.13 61.74 Central Pattana Chonburi Co., Ltd. 60.00 60.00 Central Pattana Nine Square Co., Ltd. 60.00 60.00 Namsap Pattana Co., Ltd. 50.00 50.00 Numsup Pattana Realty Service Co., Ltd. 50.00 50.00 The significant intercompany transactions between the Company and subsidiaries have already been eliminated. 3. EARNINGS (LOSS) PER SHARE Primary earnings (loss) per share is computed by dividing the net income (loss) by the number of shares outstanding at the balance sheet dates. Fully diluted earnings per share for the six-month period ended June 30, 1998, is determined on the assumption that all the Euro Convertible Bonds were converted to common shares since January 1, 1998. Net income was adjusted by interest, gain on exchange rate and the related income tax of the bonds. For the three-month and six-month periods ended June 30, 1997, fully diluted earnings per share is higher than primary earnings per share, hence, fully diluted earnings per share is not present to compare in these financial statements. (More)