SHANGHAI, Aug. 14, /Xinhua-PRNewswire/ -- Xinhua Finance (TSE Mothers: 9399, OTC ADR: XHFNY), China’s premier financial information and media provider, today issued the following notice regarding the adjustment in its financial forecasts:
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Xinhua Finance Limited (the Company) hereby announces that, as described below, it has revised its financial forecasts, which were made public on May 15, 2007, at the time of the announcement of the Financial Results for the quarter ended March 31, 2007.
I. Consolidated Financial Forecast
1. Adjustment in consolidated financial forecasts (Japanese GAAP) for the
6 months ending June 30, 2007 (January 1, 2007 - June 30, 2007)
(units: thousands of US dollars (millions of JPY) except for %)
Operating Ordinary Net
Turnover EBITDA Income/ Income/ Income/
(Loss *) (Loss *) (Loss *)
Previous 101,891 7,311 *11,493 *29,943 33,497
Projections1 (A) (11,208) (804) (*1,264) (*3,294) (3,685)
Revised 101,891 7,311 *11,493 *16,000 89,000
Projections2 (B) (11,208) (804) (*1,264) (*1,760) (9,790)
Difference (B - A) -- -- -- 13,943 55,503
(1,534) (6,105)
Percent Change (%) 0% 0% 0% 46.6% 165.7%
(for reference
only)
Previous Year’s
Results(4) (6
months ended June 75,026 11,089 2,261 3,442 2,012
30, 2006) (8,646) (1,278) (261) (397) (232)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for results of 6 months ended June 30, 2006: USD1 =
JPY115.24, based on the foreign currency exchange rate (middle rate)
from the Tokyo Foreign Exchange Market as of June 30, 2006.
2. There is no adjustment in consolidated financial forecasts (Japanese
GAAP) for the fiscal year ending December 31, 2007 (January 1, 2007 -
December 31, 2007)
(units: thousands of US dollars (millions of JPY) except for %)
Operating Ordinary Net
Turnover EBITDA Income/ Income/ Income/
(Loss *) (Loss *) (Loss *)
Previous 260,000 44,379 6,688 *13,447 31,999
Projections1 (A) (28,600) (4,882) (736) (*1,479) (3,520)
Revised 260,000 44,379 6,688 *13,447 31,999
Projections2 (B) (28,600) (4,882) (736) (*1,479) (3,520)
Difference (B - A) -- -- -- -- --
Percent Change (%) 0% 0% 0% 0% 0%
(for reference
only)
Previous Year’s
Results(4)
(year ended Dec 174,963 24,672 1,134 63 10,760
31, 2006) (20,840) (2,939) (135) (7) (1,282)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for previous year’s results: USD1 = JPY119.11,
based on the foreign currency exchange rate (middle rate) from the
Tokyo Foreign Exchange Market as of December 29, 2006.
Note: Performance estimates are determined based on information currently
available. Due to various unforeseen factors, actual performance
may differ from estimates.
3. Reasons for the adjustments
In the consolidated financial forecasts, which were made public on May 15, 2007, the Company included a non cash provision for possible impairment of intangible assets of approximately US$40 million, for the 6 months ending June 30, 2007. The Company believes that such a provision is not warranted at the present time. The Company continuously reviews its intangible assets and business outlook to determine if impairments are necessary in the future. In addition, the Company has incurred a net of US$15 million less of share issuance expenses, which is offset by the lower deemed disposition gain than originally anticipated in the consolidated financial forecasts, which were made public on May 15, 2007.
The Company expects for the six months ended June 30, 2007, its ordinary loss to decrease by approximately US$14 million and net income to increase by approximately US$55 million. As a result, the Company has revised upward its financial forecast for ordinary income and net income for the 6 months ending June 30, 2007. There is no change in financial forecast for the full year ended December 31, 2007. The Company continues to include a provision for possible impairment of intangible assets in the forecast for the full year.
II. Non-consolidated Financial Forecast
1. Adjustment in financial forecasts (Japanese GAAP) for the 6 months
ending June 30, 2007 (January 1, 2007 - June 30, 2007)
(units: USD thousand (Yen million) except for %)
Ordinary Net Income/
Turnover Income/ (Loss *)
(Loss *)
Previous Projections1 (A) 2,261 *2,019 *2,019
(249) (*222) (*222)
Revised Projections2 (B) 2,261 *3,496 *3,496
(249) (*385) (*385)
Difference (B - A) -- *1,477 *1,477
(*163) (*163)
Percent Change (%) 0% *73.2% *73.2%
(for reference only)
Previous Year’s Results(4) (6
months ended June 30, 6,067 *1,012 *1,012
2006) (699) (*117) (*117)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for results of 6 months ended June 30, 2006: USD1 =
JPY115.24, based on the foreign currency exchange rate (middle rate)
from the Tokyo Foreign Exchange Market as of June 30, 2006.
2. Adjustment in financial forecasts (Japanese GAAP) for the fiscal year
ending December 31, 2007 (January 1, 2007 - December 31, 2007)
(units: US thousand (Yen million) except for %)
Ordinary Net Income/
Turnover Income/ (Loss *)
(Loss *)
Previous Projections1 (A) 4,522 *10,750 *10,750
(497) (*1,182) (*1,182)
Revised Projections2 (B) 4,522 *12,760 *12,760
(497) (*1,404) (*1,404)
Difference (B - A) -- *2,010 *2,010
(*222) (*222)
Percent Change (%) 0% *18.7% *18.7%
(for reference only)
Previous Year’s Results(4) 9,371 *6,019 *6,019
(year ended Dec 31, 2006) (1,116) (*717) (*717)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for previous year’s results: USD1 = JPY119.11,
based on the foreign currency exchange rate (middle rate) from the
Tokyo Foreign Exchange Market as of December 29, 2006.
Note: Performance estimates are determined based on information currently
available. Due to various unforeseen factors, actual performance
may differ from estimates.
3. Reasons for the adjustments
The Company is adjusting its forecast for ordinary income and net income for both the six months ended June 30, 2007 and the full year ended December 31, 2007. The Company has incurred higher corporate overhead expenses offset by lower audit fees than originally budgeted. As a result, the Company is re-forecasting downwards its ordinary income and net income.
1. Adjustment in consolidated financial forecasts (IFRS) for the 6 months
ending June 30, 2007 (January 1, 2007 - June 30, 2007)
(units: thousands of US dollars (millions of JPY) except for %)
Turnover EBITDA Net Income/
(Loss *)
Previous Projections1 (A) 101,891 8,568 49,274
(11,208) (942) (5,420)
Revised Projections2 (B) 101,891 8,568 90,000
(11,208) (942) (9,900)
Difference (B - A) -- -- 40,726
(4,480)
Percent Change (%) 0% 0% 82.7%
(for reference only)
Previous Year’s Results(4) 75,026 11,273 4,854
(6 months ended June 30, 2006) (8,646) (1,299) (559)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for previous year’s 6 month results: USD1 =
JPY115.24, based on the foreign currency exchange rate (middle rate)
from the Tokyo Foreign Exchange Market as of June 30, 2006.
There is no adjustment in consolidated financial forecasts (IFRS) for the fiscal year ending December 31, 2007 (January 1, 2007 - December 31, 2007)
(units: thousands of US dollars (millions of JPY) except for %)
Turnover EBITDA Net Income/
(Loss *)
Previous Projections1 (A) 260,000 46,579 57,253
(28,600) (5,124) (6,298)
Revised Projections2 (B) 260,000 46,579 57,253
(28,600) (5,124) (6,298)
Difference (B - A) -- -- --
Percent Change (%) 0% 0% 0%
(for reference only) 174,963 23,331 18,731
Previous Year’s Results(4)
(year ended Dec 31, 2006) (20,840) (2,781) (2,233)
1. Exchange rate used for previous projections: USD1 = JPY110.00
2. Exchange rate used for adjusted projections: USD1 = JPY110.00
3. *Denotes loss
4. Exchange rate used for previous year’s results: USD1 = JPY119.11,
based on the foreign currency exchange rate (middle rate) from the
Tokyo Foreign Exchange Market as of December 29, 2006.
Note: Performance estimates are determined based on information currently
available. Due to various unforeseen factors, actual performance
may differ from estimates.
Forward looking statements in this report are based on information available to management at the time this report was prepared. As such, they carry risks and uncertainties and actual results and events may differ significantly from the forecast. Investors are advised not to rely solely on business forecasts in this report for making investment decisions. Forecasts of business results will also be revised as and when considered necessary, in accordance with disclosure rules.
About Xinhua Finance Limited
Xinhua Finance Limited is China’s premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Bridging China’s financial markets and the world, Xinhua Finance’s proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited (Nasdaq: XFML), Xinhua Finance leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, Xinhua Finance is headquartered in Shanghai, with offices and news bureaus spanning 11 countries worldwide. For more information, please visit http://www.xinhuafinance.com .
