Righteous (Holdings) Limited
(Incorporated in Bermuda with limited liability)


The board of directors (the "Directors") of Righteous (Holdings) Limited ("the Company") announce that the unaudited consolidated results of the Company and its subsidiaries ("the Group") for the six months ended 28th February, 1998 together with comparative figures for the corresponding period in previous year are as follows:


1. Exceptional item

The exceptional item of HK$5,425,000 in prior period represents severance payment and fixed assets written off resulted from the closure of one of the department stores in Hone Kong.

2. Taxation

No provision for Hong Kong Profits Tax was made as the Group had no assessable profit during the period (1997: Nil).

3. Loss per share

The calculation of loss per share is based on the Group's unaudited consolidated loss attributable to shareholders of HK$8,900,000 (1997: HK$8,652,000) and on 983,727,380 (1997: 983,727,380) ordinary shares in issue during the period.


The Directors do not propose any interim dividend in respect of the six months ended 28th February, 1998 (1997 Nil).


For the six months ended 28th February, 1998, the unaudited loss attributable to shareholders was up 2.87% over the corresponding period last year to HK$8.9 million. Turnover amounted to HK$62 million, dropped 42.3% as compared to that of the corresponding period of HK$108 million.

During the period under review, due to the economic depression in Japan and the sharp depreciation of Japanese Yen, the number of Japanese tourists to Hong Kong sharply decreased by 63% compared with the previous corresponding period. The purchasing power of the Japanese tourists was also weakened. Thus, the performance of Gofuku Leather Goods shop was adversely affected and the turnover was largely reduced. This is the main reason for the increase in loss for the period. However, it is believed that the opening of Chek Lap Kok new airport in July 1998, the promotion by The Hong Kong Tourist Association and the cool down of the Asian financial turmoil will help the recovery of tourism industry.

Although the economy of most of the Asian countries were in stagnation, the consumer market of the People's Republic of China ("PRC") was not affected. The Group's PRC operation grew steadily and it has opened one leather goods outlet in Beijing, which contributed profits to the Group. The Group is confident of its prospects in the PRC and plans to add more retail outlets to the existing operation.

For property development, the Group will improve its existing property portfolio. The approval for the acquisition of quality residential properties in Repulse Bay at the special general meeting held on 31st March, 1998 is the first step to achieve this aim.

Looking ahead, the PRC government will stimulate the internal needs to keep the economy grow, with its focus on strengthening the residence construction in order to promote housing reform program. It is believed that this program will offer opportunities to the Group. Besides, the Group will continue to develop the retail and wholesale network, as well as to find new brand name products, to suit the elevating consumer taste.

On 15th January, 1998, Goldbells Enterprises Limited sold its beneficial interest in the issued share capital of the Company to Always Full Investments Limited ("Always Full"). And Always Full became the single largest shareholder of the Company. Thus, the management level was changed substantially.

On behalf of the Board, I would like to express our sincere thanks to our staff for their dedication and hard work, and our gratitude to our shareholders and business associates for their continuous support and confidence in the Group.


The Directors have resolved to change the Chinese name adopted by the Company to with effect from 5th March, 1998.


On 5th March, 1998, three wholly-owned subsidiaries of the Company entered into three conditional sale and purchase agreements with Oriental Land Company Limited for the acquisition of Flats 1A, 3B, 12B and carpark nos. 4, 7, 7A and 22 of Royal Garden, No. 27 Repulse Bay Road, Hong Kong for a total consideration of HK$90,500,000.


As at 28th February, 1998, none of the Directors had any interest in the shares in the Company or any of its associated corporations which requires notification to the Company and The Stock Exchange of Hong Kong Limited pursuant to section 28 of the Securities (Disclosure of Interests) Ordinance ("SDI Ordinance"), including interests which they are deemed or taken to have under section 31 or Part I of the schedule to that ordinance, or which is required, pursuant to section 29 of that ordinance, to be entered in the register referred to therein.


As at 28th February, 1998, the beneficial interests of the Directors in the issued share capital of the Company which were notified to the Company and The Stock Exchange of Hong Kong Limited pursuant to section 28 or section 31 of the SDI Ordinance, or were required, pursuant to section 29 of the SDI Ordinance or the Model Code for Securities Transactions by Directors of Listed Companies, to be entered in the register referred to therein were as follows:

Note:  These Shares were held by Always Full, a company wholly owned by Mr. Chan Kar Leung and Madam Leung San Lai, his wife, in equal shares.

As at 28th February, 1998, save the interests of Mr. Chan Kar Leung, Madam Leung Sau Lai and Always Full disclosed above, there was no other substantial holder of 10 per cent. or more of the issued shares of the Company.


Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's shares or other securities during the period under review.

By order of the Board
Chan Kar Leung

Hong Kong, 18th May, 1998

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