Turnover represents the invoiced value of goods sold net of returns and allowances.
Gaojin has yet to achieve profitable operations and so its income tax exemption period has not yet commenced. The dividends of prior year represented an interim dividend of 3 cents per ordinary share and a final divdend of 5 cents per ordinary share. The Board of Directors do not recommend payment of a dividend for the fourteen months period ended 31st December, 1997. The undesirable economic condition in the Asian region including Hong Kong in the second half of 1997 poised negative impacts on the Group's business for the fourteen months ended 31st December, 1997. As a result of the reorganisation programs and expansion plans within the Group leading to increased overhead costs, the profit margin of the Group declined significantly.