RNS Number:4335H
Esprit Holdings Ld
13 February 2003
Esprit Holdings Limited
(Incorporated in Bermuda with limited liability)
INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED DECEMBER 31, 2002
INTERIM RESULTS
The Board of Directors of Esprit Holdings Limited (the "Company") is pleased to
announce that the unaudited condensed consolidated results of the Company and
its subsidiaries (the "Group") for the six months ended December 31, 2002
together with comparative figures for the corresponding period are as follows:
Condensed Consolidated Profit and Loss Account (Unaudited)
For the 6 months ended
December 31,
2002 2001
Notes HK$'000 HK$'000
Turnover
Company and subsidiary companies 6,066,595 4,647,845
Share of associated companies 135,065 114,807
6,201,660 4,762,652
Company and subsidiary companies
Turnover 2 6,066,595 4,647,845
Cost of goods sold (3,040,208) (2,419,795)
Gross profit 3,026,387 2,228,050
Staff costs (768,485) (610,149)
Depreciation and amortization (182,421) (130,120)
Other operating costs (1,169,658) (812,186)
Operating profit 2 905,823 675,595
Interest income 11,459 8,926
Finance costs (15,290) (1,935)
Share of results of associated companies 28,021 13,773
Profit before taxation 3 930,013 696,359
Taxation 4 (374,754) (272,544)
Profit after taxation 555,259 423,815
Minority interests - (38,619)
Profit attributable to shareholders 555,259 385,196
Interim dividend 5 88,411 68,906
Earnings per share
- Basic 6 47.1 cents 33.7 cents
- Fully diluted 6 46.9 cents 33.0 cents
Dividend per share 7.5 cents 6.0 cents
Condensed Consolidated Balance Sheet Unaudited Audited
As at December 31, As at June 30,
2002 2002
Notes HK$'000 HK$'000
Intangible Assets 1,797,032 1,849,940
Fixed Assets 1,070,952 988,697
Other Investments 7,686 7,686
Associated Companies 76,111 78,368
Deferred Tax Assets 4,803 4,233
Current Assets
Stocks 921,005 955,321
Debtors, deposits and prepayments 7 950,375 824,248
Amounts due from associated companies 35,261 17,808
Short-term bank deposits 166,979 331,647
Bank balances and cash 1,327,581 650,026
3,401,201 2,779,050
Current Liabilities
Creditors and accrued charges 8 1,156,764 976,365
Taxation 730,022 681,556
Obligations under finance leases
- due within one year 239 593
Bank overdrafts 32,508 47,995
1,919,533 1,706,509
Net Current Assets 1,481,668 1,072,541
Total Assets Less Current Liabilities 4,438,252 4,001,465
Financed by:
Share Capital 9 117,856 117,694
Reserves 1,217,555 1,113,013
Retained Profits 2,180,576 1,713,728
Interim Dividend 88,411 -
Proposed Final and Special Dividends - 259,284
Shareholders' Funds 3,604,398 3,203,719
Obligations Under Finance Leases 333 450
Long-term Bank Loan 780,000 780,000
Deferred Tax Liabilities 53,521 17,296
4,438,252 4,001,465
Notes to the Financial Statements
1. Accounting policies
These unaudited condensed consolidated interim accounts ("interim
accounts") are prepared in accordance with Hong Kong Statement of
Standard Accounting Practice ("SSAP") No. 25, "Interim Financial
Reporting", issued by the Hong Kong Society of Accountants, and Appendix
16 of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited (the "Listing Rules").
The accounting policies and methods of computation used in the
preparation of these interim accounts are consistent with those used in
the annual accounts for the year ended June 30, 2002 except that the
Group has adopted SSAP 34 "Employee benefits" issued by the Hong Kong
Society of Accountants which is effective for accounting periods
commencing on or after January 1, 2002. The adoption of the new SSAP has
no material effect on the results for the current and prior accounting
periods.
2. Turnover and segment information
The Group is principally engaged in the wholesale and retail
distribution, sourcing and licensing of quality fashion and life-style
products under its own internationally known Esprit brand name, together
with Red Earth cosmetics, skin and body care products and the operation
of Salon Esprit.
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Turnover
Sales of goods 5,965,211 4,571,332
Commission income 3,723 4,447
Licensing and other income 97,661 72,066
6,066,595 4,647,845
Primary reporting format - business segments
The Group's businesses are managed according to the nature of their
operations and the products and services they provide. Each of the
Group's business segments represents a strategic business unit that
offers products and services which are subject to risks and returns that
are different from those of other business segments.
For the 6 months ended December 31, 2002
Licensing
Wholesale Retail Sourcing & others Eliminations Group
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Turnover 3,405,105 2,560,106 3,723 97,661 - 6,066,595
Inter-segment revenue - - 314,789 128,122 (442,911) -
Segment revenue 3,405,105 2,560,106 318,512 225,783 (442,911) 6,066,595
Segment results 471,095 138,717 263,828 124,549 (230) 997,959
Intangible assets (52,908)
amortization
Unallocated net expenses (39,228)
Operating profit 905,823
For the 6 months ended December 31, 2001
Licensing
Wholesale Retail Sourcing & others Eliminations Group
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Turnover 2,575,718 1,995,614 4,447 72,066 - 4,647,845
Inter-segment revenue - - 250,979 93,233 (344,212) -
Segment revenue 2,575,718 1,995,614 255,426 165,299 (344,212) 4,647,845
Segment results 360,467 70,264 222,306 96,702 (26,365) 723,374
Intangible assets (23,294)
amortization
Unallocated net expenses (24,485)
Operating profit 675,595
Secondary reporting format - geographical segments
In determining the Group's geographical segments, turnover is attributed
to the segments based on the location of customers. The Group has
changed the presentation of its geographical segments to reflect its
current internal financial reporting which was revised following the
implementation of the Group's new global management structure in the
current period. Accordingly prior period comparatives have been
re-stated to conform with the current period presentation.
Turnover
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Europe 4,727,743 3,380,429
Asia 897,376 881,136
Australasia 299,511 268,575
North America and others 141,965 117,705
6,066,595 4,647,845
3. Profit before taxation
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Profit before taxation is arrived at after crediting and charging the following:
Crediting:
Provision for doubtful debts written back - 6,213
Provision for obsolete stock written back - 15,138
Net exchange gains 4,037 3,830
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Charging:
Depreciation
- Owned assets 129,090 106,293
- Assets held under finance leases 423 533
Intangible assets amortization 52,908 23,294
Interest on long-term bank loan, overdrafts, and
other loans wholly repayable within five years 15,248 1,855
Interest element of finance leases 42 80
Loss on disposal of fixed assets 2,963 5,690
Provision for doubtful debts 15,760 -
Provision for obsolete stock 45,688 -
4. Taxation
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Company and its subsidiaries:
Hong Kong profits tax 30,429 31,942
Overseas taxation 338,547 239,870
368,976 271,812
Associated companies - overseas taxation 5,778 732
374,754 272,544
Hong Kong profits tax has been provided at the rate of 16% (2001/2002:
16%) on the estimated assessable profit for the period.
Overseas (outside of Hong Kong) taxation has been calculated at the
rates of taxation prevailing in the countries in which the Group
operates.
5. Interim dividend
For the 6 months ended
December 31,
2002 2001
HK$'000 HK$'000
Alignment of final dividend on new shares
issued (2001/2002: 1,332,000 new shares) - 160
Interim dividend declared of 7.5 Hong Kong cents
(2001/2002: 6.0 Hong Kong cents) per share 88,411 68,746
88,411 68,906
The amount for the 2002/2003 interim dividend is based on 1,178,812,434
shares (2001/2002: 1,145,772,831 shares) in issue as at January 31,
2003.
6. Earnings per share
The calculation of basic earnings per share is based on the unaudited
profit attributable to shareholders of HK$555,259,000 (2001/2002:
HK$385,196,000) and the weighted average number of shares in issue
during the period of 1,178,350,477 (2001/2002: 1,143,169,751).
The calculation of fully diluted earnings per share is based on the
unaudited profit attributable to shareholders of HK$555,259,000 (2001/
2002: HK$385,196,000), and the weighted average number of shares in
issue during the period of 1,183,715,121 (2001/2002: 1,167,511,920)
after adjusting for the number of dilutive ordinary shares deemed to be
issued at no consideration based on the assumption that all outstanding
share options granted under the Company's share option schemes had been
exercised.
7. Debtors, deposits and prepayments
Debtors, deposits and prepayments included trade debtors and their
ageing analysis is as follows:
As at December 31, As at June 30,
2002 2002
HK$'000 HK$'000
0-30 days 520,747 460,168
31-60 days 39,042 21,341
61-90 days 8,432 6,758
Over 90 days 47,192 32,392
615,413 520,659
The Group's retail sales to customers are mainly on cash basis. The
Group also grants credit period which is usually 30 days to certain
wholesale and franchise customers.
8. Creditors and accrued charges
Creditors and accrued charges included trade creditors and their ageing
analysis is as follows:
As at December 31, As at June 30,
2002 2002
HK$'000 HK$'000
0-30 days 396,052 415,178
31-60 days 40,618 29,367
61-90 days 16,002 8,038
Over 90 days 35,945 11,561
488,617 464,144
9. Share capital
As at December 31, As at June 30,
2002 2002
HK$'000 HK$'000
Authorized:
2,000,000,000 shares of HK$0.10 each 200,000 200,000
Number of shares
of HK$0.10 each Nominal value
'000 HK$'000
Issued and fully paid:
Balance at July 1, 2001 1,142,505 114,251
Exercise of share options 32,393 3,239
Issues of scrip dividend shares 2,039 204
Balance at June 30, 2002 1,176,937 117,694
Balance at July 1, 2002 1,176,937 117,694
Exercise of share options (Note (a)) 1,625 162
Balance at December 31, 2002 1,178,562 117,856
Note (a):
During the period, 1,625,000 ordinary shares of HK$0.10 were issued at a
premium of the range from HK$2.54 to HK$6.26 each in relation to share
options exercised by Directors and employees under a share option
scheme.
INTERIM DIVIDEND
The directors have declared an interim dividend for the six months ended
December 31, 2002 of HK7.5 cents per share (2001/2002: HK6.0 cents), payable on
or about Tuesday, April 8, 2003 to the shareholders whose names appear on the
Register of Members of the Company at close of business on Friday, March 28,
2003 ("Shareholders"). The relevant dividend warrants will be dispatched to
Shareholders on or about Tuesday, April 8, 2003.
MANAGEMENT DISCUSSION AND ANALYSIS
The Esprit Group
Turnover
Despite the weak global economic condition and increasingly challenging
operating environment, turnover of the Group for the six months ended December
31, 2002 increased 30.5% year-on-year to HK$6,066 million. The Esprit brand
continues to gain market share in Europe, where weaker brands that are unable to
compete lost correspondingly. The wholesale and retail operations both recorded
double-digit growth. The relatively higher Euro translation rate for this period
further augmented the Group's results. All lines of business and all four
geographical segments with operations achieved turnover growth.
Group Turnover Breakdown1
6 months ended 6 months ended Year-on-Year
Dec 31, 2002 Dec 31, 2001 Growth
Operation Mix
Wholesale 56% 55% 32.2%
Retail 42% 43% 28.3%
Licensing, Sourcing and Others 2% 2% 32.5%
Geographical Mix
Europe 78% 73% 39.9%
Asia 15% 19% 1.8%
Australasia 5% 6% 11.5%
North America & Others 2% 2% 20.6%
Product Mix
Women's wear 58% 56% 34.1%
Men's wear 14% 12% 55.1%
Kid's wear 8% 9% 15.2%
Shoes & Accessories 13% 14% 16.1%
Red Earth 2% 3% 1.7%
Others2 5% 6% 20.9%
1. Sales to third parties excluding inter-segment revenue.
2. Include salon, cafe, licensing income, bodywear, bed & bath,
homeware & other licensed products such as timewear, eyewear, jewelry,
etc.
Wholesale activities, primarily in Europe, generated HK$3.4 billion of turnover
for the past six months, representing a 32.2% year-on-year growth. Our largest
wholesale market Germany, representing 57% of the Group's total wholesale
turnover, achieved over 20% growth year-on-year notwithstanding the weak local
economy. Esprit products continue to be department store shoppers' favorite and
therefore, our wholesale partners are increasing Esprit's store space despite
the unfavorable macro environment. Also, our focus in growing smaller markets
has borne fruit with Benelux and France each registered more than 50% wholesale
sales growth. 319 shop-in-stores and freestanding franchise stores were added in
the six months ended December 31, 2002. The Group's wholesale partners,
excluding our China associates, now maintain around 2,000 Esprit point-of-sales
worldwide, totaling around 126,000 square meters of sales area, an increase of
18% compared with our wholesale footprint as at June 30, 2002. The U.S. had a
very encouraging start. Products offered in over 70 Macy's points-of-sale were
well-received by the market, and The Federated Group, Dillards and Marshal
Fields have since indicated that they will open over 300 shop-in-stores by the
end of this year.
Retail sales rose 28.3% year-on-year to HK$2.6 billion, mostly fueled by growth
in Europe, which represented 61% of the Group's total retail sales. Asia
remained flat in turnover, delivered 24% of the Group's total retail sales on
the other hand. The Group achieved around 5% comparable store growth in the
first half of this financial year with Europe continuing to register
double-digit comparable store growth while Asia returned to flat comparable
store growth from a declining trend last year. The European retail operation
continues to be the Group's fastest growing division, registering around 52%
turnover growth year-on-year. The strongest growth was delivered by Germany,
which represented 44% of the Group's total retail turnover. With a net increase
of 15,000 square meters of retail store space in the last twelve months, Germany
registered over 60% retail turnover growth year-on-year. Stores opened in Europe
during the first half of this financial year achieved better-than-planned
results while all the stores in Europe opened for over two years, except for two
small ones, were profitable with positive comparable store growth. All other
retail markets recorded turnover growth except for a single-digit percentage
decline in Canada and Taiwan. Our e*shop in Europe continued to grow rapidly and
achieved over HK$80 million sales in this period, a three-fold increase over
last year. Operating margin improved due to more stringent expense control. We
invested about HK$150 million in capital expenditures to increase our
directly-managed retail sales area, mostly in Germany. Excluding our China
associates, the total number of directly-managed stores world-wide amounted to
533 after adding 40 new retail shops, bringing the total sales area to
approximately 147,000 square meters, an increase of 6% compared with the balance
as at June 30, 2002.
Revenues from licensing, sourcing and other activities grew 32.5% over the same
period last year. The escalation in turnover was partly attributable to
additional licensing income from new U.S. licensees assumed from the U.S.
acquisition last year. Our existing licensees, just to name a few, include
Charmant for eyewear, Coty for fragrance, Beach Patrol for swimwear, Carole
Hochman for sleepwear and loungewear. The response and excitement generated by
Esprit global unification has generated additional opportunities for our
licensing business. Licensing partnerships were forged soon after the U.S.
acquisition with Nine West for shoes, accessories and bags, and Adjmi for kid's
apparel, and both will start to contribute in the second half of this financial
year.
On the sourcing front, focus has been put on gearing up for the change of
Women's Collection from 6 to 12 seasons per year to ensure smooth transition.
The strengthening of Euro against Hong Kong dollars has enabled us to further
reduce our sourcing cost. The gradual migration to lower-cost suppliers in
Northern China will continue.
Operating Income
Gross margin for the six months ended December 31, 2002 increased to 49.9% from
47.9% in the same period last year. Improvement in the Group's gross margin was
primarily attributable to a combination of better merchandise, which led to more
full price sales, and lowered sourcing cost. This has helped offset the fierce
pricing pressure the apparel industry is currently facing globally.
EBITDA for the six months grew 35.1% year-on-year to HK$1,088 million, and
EBITDA margin increased 0.6% point to 17.9%. The improvement was mainly
attributable to greater economies of scale as well as improved profitability of
the retail operation. Staff costs, which accounted for 36% of total operating
expenses, decreased by 0.4% point while building expenses also showed slight
decrease as a percentage of sales.
Depreciation and amortization expenses were HK$182 million, that is HK$52
million or 40.2% higher than the corresponding period last year. The significant
increase was partly due to additional HK$30 million amortization charge
attributable to the intangible assets in the U.S. acquired in the second half of
last financial year. Both the Financial Accounting Standards Committee of the
Hong Kong Society of Accountants and the International Accounting Standards
Board are currently inviting comments on their proposed treatment of no
amortization on intangible assets with indefinite useful lives. Depending on the
timing of release of any revised standards in this regard, we will make
appropriate adjustments in due course.
Net Profit
The effective tax rate was 40.3% for the reporting period, 1.2% points higher
than the corresponding period last year. The increase in trademark amortization
described above, as well as additional tax on acquired minority interest in
Esprit International, has negatively impacted the Group's effective tax rate by
approximately 3% for this period. Net profit rose 44.1% to HK$555 million and
net profit margin improved from 8.3% to 9.2%.
Liquidity and Financial Resources
As at the balance sheet date, the Group's cash and cash equivalents were around
HK$1.5 billion. In the past six months, the Group generated a positive operating
cash flow of HK$866 million and ended the period with HK$682 million in net
cash, an increase of HK$528 million over the balance as at June 30, 2002. Our
debt to equity ratio, expressed as a percentage of interest bearing external
borrowings over shareholders' funds, was 22.6%. The current ratio improved to
1.8:1 from 1.6:1 as at end of last financial year.
As previously reported, the Group has utilized an outstanding term loan of
HK$780 million and revolving lines of credit to fund the Group's operating
activities. As at the balance sheet date, total bank borrowings of HK$813
million were outstanding. The Group has assets of HK$48.8 million pledged as
security for overdraft and short-term revolving facility.
To minimize our foreign exchange exposure, the Group entered into foreign
exchange forward contracts with large and reputable financial institutions to
reduce credit risk. As at December 31, 2002, outstanding contracts amounted to
HK$476.5 million.
Capital expenditure aggregated to approximately HK$180 million for the past six
months was used primarily for expansion of our directly-managed retail sales
area. The Group will continue to fund its capital expenditures by internally
generated cash flow. The planned HK$220 million for the remainder of this
financial year will be spent mainly on expansion and upgrades of our existing
distribution network and systems.
China Associates
Our China associates continue to outperform competitors and gain market share in
the fast-growing China market achieving an increase of 70.6% year-on-year in net
profit contribution to the Group for the first half of this financial year to
HK$22 million. 27 new directly managed stores and 131 new shop-in-stores and
franchised shops were opened in the past six months. Together with the existing
stores, the China associates now have 140 directly-managed retail stores and
over 560 franchised outlets in China. In light of the strong financial position
of the associates, all shareholders loans, representing practically all the
initial capital injection, have been fully repaid.
Outlook
Looking ahead into the second half of this financial year, we expect the growth
momentum to continue notwithstanding the difficult global operating conditions
particularly in Germany. Management is confident that Esprit will continue to
deliver earnings growth for the tenth consecutive year and end the fiscal year
with double-digit top and bottom line growth. Wholesale orders, which accounted
for over half of the Group's turnover, showed double-digit year-on-year growth
for bookings to May 2003. We believe our unique pricing and product strategy,
coupled with tight control over our cost, should enable us to continue capturing
market share and maintain respectable margins in a tough apparel market.
Our European growth momentum should continue as our growth in Europe in the past
few years has not been premised on a general increase in consumer spending on
all types of apparel. Market penetration through offering of trend-right
products at good value, coupled with over 300 shops-in-store planned to be
opened in the next fiscal year, should sustain our European wholesale growth. On
the retail front, despite the weak global economy, we will continue to expand
our retail network, adding stores in Germany, France, Belgium, The Netherlands
and Austria with 15,000 square meters of additional retail store space already
secured. There are also plans in the U.K. to realign resources and expand in the
central London area.
The U.S. market offers great potentials for Esprit to expand. With our U.S.
operations already profitable, we will continue to execute our low-risk
wholesale strategy and expect US$50 to 60 million wholesale turnover from the
U.S. in the next fiscal year. By the end of 2003, we should have over 300
points-of-sales in the U.S. through our wholesale partners. In addition, Esprit
products will be offered through our licensees' vast distribution network in the
U.S.
The Group has taken steps to improve the performance of the Asia and Canada
retail division, emphasizing profitability rather than market share expansion.
First, we focus on restoring the brand image by improving product quality and
thus reducing the amount of discounting that has been prevalent in these
markets. We will further refine our global brand identity, offering consistent
style and quality worldwide. The potential earnings improvement from the
implementation of these strategies should gradually surface as new shipments to
Asia and Canada arrive in the next few months.
Management believes there is ample room for organic growth. In terms of
geographical expansion, we have already started wholesale operations in Korea
with over 15 point-of-sales while Japan may be a potential market in the longer
term. Operationally, we will embark on more effective supply chain management,
which will further improve our speed to react to market requirements and enhance
profitability of merchandise. More emphasis will be placed on developing our
global licensing business through expansion of licensed product categories as
well as our licensees network. Furthermore, we will extend existing U.S.
licenses to Canada. A re-launch of Red Earth is also planned in 2003. With our
proven product quality, strong financial position and seasoned management team,
we foresee sustainable long-term growth for our Company.
Corporate Governance
The Asset magazine ranked Esprit number 6 in Hong Kong for "Best in Corporate
Governance", a poll which Esprit was ranked number 8 last year.
As our continued effort in enhancing corporate governance and strengthening our
global management, Mr. Heinz Krogner was appointed as the Group CEO in November
of 2002, thus separating the role of the Chairman from the Group CEO.
Furthermore, we reinforced our board representation through the addition of Mr.
Paul Cheng as an independent non-executive director, bringing the total number
of independent non-executive directors to four. Alongside another newly
appointed executive director, Mr. Thomas Grote, global head of wholesale, our
board now has eleven directors with five of them being non-executive directors.
With Mr. John C. Poon, our Group CFO and executive director, being awarded
Director of the Year Award by the Hong Kong Institute of Directors ("HKIOD") in
November 2002, our board currently has two HKIOD award-winning directors.
Significant Events
On December 2, 2002, Esprit Holdings Limited was officially admitted into the
Hang Seng Index and became a blue chip company in Hong Kong. Esprit was also
generally recognized as the best-performing stock among the Hong Kong blue chips
in the calendar year 2002. Esprit's effort in improving corporate governance and
communications with shareholders was well recognized with several awards given
to Esprit in the past six months. We were chosen as one of Hong Kong's "Overall
Best Managed Companies", one of the companies with "Overall Best Investor
Relations", "Best Corporate Strategy", "Best Operational Efficiency" and "Best
Communications with Shareholders/Investors" by Asiamoney magazine in December
2002. We were the only Hong Kong listed company amongst the thirty finalists
worldwide and one of the ten finalists in Asia Pacific nominated by EIU
(Economist Intelligence Unit), a subsidiary of The Economist group, for the
"Global Corporate Achievement Awards 2002" in October last year.
Human Resources
As at December 31, 2002, the Group employed a total of 6,232 people (2001:
6,140). We offer competitive remuneration packages to our employees with bonuses
and share options granted based on individual performance, experience and
prevailing industry practices. About 31.8 million options were granted to a
selected group of key personnel in November 2002.
CLOSURE OF REGISTER OF MEMBERS
The Register of Members of the Company will be closed from Tuesday, March 25,
2003 to Friday, March 28, 2003, both days inclusive, during which period no
transfer of shares will be effected.
In order to qualify for the interim dividend mentioned above, all transfers
accompanied by the relevant share certificates must be lodged with the Company's
share registrar in Hong Kong, Secretaries Limited, at G/F., Bank of East Asia
Harbour View Centre, 56 Gloucester Road, Wanchai, Hong Kong not later than 4:00
p.m. on Monday, March 24, 2003.
PURCHASE, SALE OR REDEMPTION OF SECURITIES
Neither the Company nor any of its subsidiaries have purchased, redeemed or sold
any of the Company's shares during the period under review.
AUDIT COMMITTEE
The Audit Committee is comprised of four non-executive Directors, three of whom
are independent. The Audit Committee has reviewed the accounting principles and
practices adopted by the Group and has also discussed auditing, internal
controls and financial reporting matters including the review of the unaudited
interim results for the six months ended December 31, 2002 with management.
In addition, the Group's external auditors, PricewaterhouseCoopers, has
performed an independent review of the interim financial report for the six
months ended December 31, 2002 in accordance with Statements of Auditing
Standards 700 "Engagements to review interim financial reports" issued by the
Hong Kong Society of Accountants. On the basis of their review which does not
constitute an audit, PricewaterhouseCoopers confirmed in writing that they are
not aware of any material modifications that should be made to the interim
financial report.
CODE OF BEST PRACTICE
In the opinion of the Directors, the Company was in compliance with the Code of
Best Practice as set out in Appendix 14 of the Listing Rules throughout the
period under review.
DISCLOSURE OF INFORMATION ON THE STOCK EXCHANGE'S WEBSITE
Information that is required by paragraphs 46(1) to 46(6) of Appendix 16 of the
Listing Rules will be published on the website of The Stock Exchange of Hong
Kong Limited (http://www.hkex.com.hk) in due course.
By Order of the Board
John Poon Cho Ming
Executive Director & Group CFO
Esprit Holdings Limited
Hong Kong, February 12, 2003
This announcement can also be accessed through our internet site at
www.espritholdings.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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