United Energy Group Limited - HKExnews

UNITED ENERGY GROUP LIMITED
Management
Discussion and Analysis
Financial Review
For the 9 months ended 31 December 2009, the Group’s turnover was approximately HK$25.4 million, which represented
a significant increase of approximately 390.3% as compared to the turnover of approximately HK$5.18 million for the year
ended 31 March 2009. The turnover during the period under review represented services fees income derived from the
newly acquired oilfield supporting service business. For the year ended 31 March 2009, the turnover only represented
rental income and property management services fees income derived from a commercial building located in the PRC.
For the 9 months ended 31 December 2009, other income increased by 104.7% to approximately HK$103.6 million (for the
year ended 31 March 2009: approximately HK$50.6 million). The increase was mainly due to increase in realized foreign
exchange gain, net gain on disposals of financial assets at fair value through profit or loss, unrealized fair value gain on
investment properties and expiry of derivative financial instruments.
Administrative expenses decreased from approximately HK$606 million for the year ended 31 March 2009 to approximately
HK$110 million for the 9 months ended 31 December 2009. These expenses mainly included the non-cash expense of
approximately $54.3 million due to stock options granted per the share option scheme. The decrease in administrative
expenses for the period under review was mainly due to significant decrease in the last year one-off provisions for the 9
months ended 31 December 2009.
In August 2009, the Group has successfully completed the disposal of an associate company, which is an investment
holding company for a consideration of approximately HK$116 million. The initial investment cost in June 2008 was
approximately HK$100 million. After taking into account of the share of profits of associates, this has resulted in a net loss
on disposal of approximately HK$2.78 million. However, the disposal had further improved the Group’s financial position
and the working capital condition.
In summary, loss attributable to shareholders of the Company was approximately HK$61.5 million for the 9 months
ended 31 December 2009, representing a 88.8% decrease over the loss attributable to equity holders of the Company of
approximately HK$550.4 million for the year ended 31 March 2009. This result is reflected in the basic loss per share which
were 0.48 HK cents as compared with the basic loss per share of 4.31 HK cents for the year ended 31 March 2009.
The Group’s Audit Committee has reviewed the audited consolidated financial statements for the 9 months ended 31
December 2009. The Audit Committee has reviewed with management the accounting principles and practices adopted
by the Group, as well as internal control and financial reporting matters, and found them to be satisfactory.