ASIA COMM HOLD<00104> - Results Announcement

Asia Commercial Holdings Limited announced on  23/7/2004:
(stock code: 00104 )
Year end date: 31/3/2004
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 1/4/2003      from 1/4/2002  
                                     to 31/3/2004       to 31/3/2003  
                               Note  ('000      )       ('000      )
Turnover                           : 261,477            245,596           
Profit/(Loss) from Operations      : 34,377             (33,499)          
Finance cost                       : (1,362)            (1,352)           
Share of Profit/(Loss) of 
  Associates                       : (606)              (782)             
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 32,743             (32,293)          
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.0981             (0.0968)          
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 32,743             (32,293)          
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.      ADOPTION OF HONG KONG FINANCIAL REPORTING STANDARDS/CHANGES IN 
ACCOUNTING POLICY
                
In the current year, the Group has adopted, for the first time, the 
following Hong Kong Financial Reporting Standards ("HKFRS") issued by the 
Hong Kong Society of Accountants ("HKSA"), the term of HKFRS is inclusive 
of Statements of Standard Accounting Practice ("SSAPs") and 
Interpretations approved by the HKSA:

SSAP 12 (Revised)               Income Taxes

Income Taxes

In the current year, the Group has adopted SSAP 12 (Revised) "Income 
Taxes". The principal effect of the implementation of SSAP 12 (Revised) is 
in relation to deferred tax. In previous years, partial provision was made 
for deferred tax using the income statement liability method, i.e. a 
liability was recognized in respect of timing differences arising, except 
where those timing differences were not expected to reverse in the 
foreseeable future. SSAP 12 (Revised) requires the adoption of a balance 
sheet liability method, whereby deferred tax is recognized in respect of 
all temporary differences between the carrying amounts of assets and 
liabilities in the financial statements and the corresponding tax bases 
used in the computation of taxable profit with limited exceptions. 

The adoption of SSAP 12 (Revised) has had no material effect on the 
results for the current or prior accounting periods and, accordingly, no 
prior period adjustment is required.

 
2.      TURNOVER AND OTHER REVENUE

Turnover represents the gross proceeds received and receivable derived 
from the sales of watches, investment securities, property rental and 
provision of programming service and is summarized as follows:
                                        2004            2003
                                        HK$'000         HK$'000
Turnover                        
  Sales of watches                      245,489         213,630
  Rental income                 
    Investment properties                 3,835           4,443
    Others                                  772             615
                                        -------------------------
                                          4,607           5,058
                        
Investment securities                     7,960          21,980
Programming service                       3,421           4,928
					------------------------
                        
                                        261,477         245,596
					------------------------
                        
Other revenue                   
  Interest income from other than short-term bank deposits      
                                             93             331
  Interest income from short-term bank deposits 
                                            533             626
  Customers service income and others     8,036           7,475
  Profit on disposal of property held for resale        
                                            853               -
                        
                                          9,515           8,432
					------------------------
                                        270,992         254,028
					========================


3.      OTHER OPERATING EXPENSES, NET

                                        2004            2003
                                        HK$'000         HK$'000
                        
Provision for bad and doubtful debts      1,337           3,944 
Provision for diminution in value of properties held for resale 
                                            297             454 
Provision for slow-moving inventories    19,702           8,685 
Net unrealized loss on revaluation of investments in securities 
                                              -             873 
Written back of provision for bad and doubtful debts    
                                              -             (59)
Written back of trade and other payables   (208)         (4,910)
					------------------------
                                         21,128           8,987 
					========================

4.      OTHER INCOME (EXPENSES), NET
                                        2004            2003
                                        HK$'000         HK$'000
Impairment loss recognized in respect of investment securities  
                                             -           (2,285)
Impairment loss recognized in respect of goodwill       
                                        (7,449)         (20,977)
Write off of fixed assets                 (108)             (55)
Amortization of goodwill                  (849)          (1,821)
Exchange reserve transferred to income statement upon                   
  liquidation of a subsidiary                -           (1,912)
Profit on liquidation of a subsidiary       14                -
Receipt of further consideration from the disposal of Lakeview
  Project                               47,361                -
					------------------------
                                        38,969          (27,050)
					=========================


5.      PROFIT (LOSS) BEFORE TAXATION

Profit (loss) before taxation has been arrived at after crediting and 
charging the following:

                                        2004            2003
                                        HK$'000         HK$'000
Crediting:                      
  Gross gain on sale of investments in securities- 
                                            
    other investments                     2,166             649
  Profit on disposal of property held for resale        
                                            853               -
  Dividend from listed securities            48              30
					------------------------
                        
                        
Charging:                       
  Depreciation on owned fixed assets      4,096           4,086
  Amortization on                       
    Goodwill                                849           1,821
    Computer software                         -              70
Impairment loss recognized in respect of investment 
  securities                                  -           2,285
  Impairment loss recognized in respect of goodwill     
                                          7,449          20,977
  Cost of inventories recognized as expenses    
                                        180,306         179,571
					------------------------



6.      EARNINGS (LOSS) PER SHARE

(a)     Including the receipt of further consideration from the disposal 
of Lakeview Project:

The calculation of the basic earnings (loss) per share for the year ended 
31st March, 2004 and 2003 is computed based on the following data:
                                2004            2003
Earnings (loss)                 
Earnings (loss) for the                 
  purpose of basic earnings (loss) per share    
                                HK$32,743,000           (HK$32,293,000)
				=========================================
                        
Number of shares                        
Weighted average number of ordinary shares for the                      
  purpose of basic earnings (loss) per share    
                                   333,719,516              333,719,516
				=========================================
                        

(b)     Excluding the receipt of further consideration from the disposal 
of the Lakeview Project:

The calculation of the additional basic loss per share for the year ended 
31st March, 2004 and 2003 is computed based on following data:
                                2004            2003
                                HK$             HK$
Earnings (loss)                 
Net profit (loss) for the year   32,743,000     (32,293,000)
						============
                        
Adjustment for:                 
  Receipt of further consideration from the disposal of                 
  the Lakeview Project          (47,361,000)   
				------------         
                        
Loss for the purpose of basic loss per share excluding                  
  the receipt of further consideration from the disposal of                     
  the Lakeview Project          (14,618,000) 
				============           

Number of shares  

Same as those details above for basic earnings (loss) 
per share.  

The additional basic loss per share figure is disclosed to 
give a clearer indication of the underlying performance of the Group.  

(c)      
No disclosure of the diluted earnings per share and additional diluted 
loss per share for the year under review with comparative diluted loss per 
share and additional diluted loss per share for the previous year is shown 
as the issue of potential ordinary shares during both years from the 
exercise of the outstanding share options and convertible notes will be 
anti-dilutive.


7.      COMPARATIVE FIGURES 

Certain comparative figures have been reclassified to conform with the 
current year's presentation.