PSE Circular for Brokers No. 568-00

March 7, 2000 PSE CIRCULAR FOR BROKERS NO. 568-00 SINOPHIL CORPORATION UNAUDITED 1999 OPERATING RESULTS Management's Discussion and Analysis of Results of Operations The Company's revenues for the fiscal year ended December 31, 1999 declined to P104 million from P1.564 million for the fiscal year ended December 31, 1998. 1999 revenues were mainly from dividend and interest income, whereas the bulk of 1998 revenues were from an equity in capital adjustment of an investee (Legend International Resorts). The Company incurred a net loss of P714 million in 1999 from a net income of P189 million in 1998, due primarily to lower revenues and the P795 million in equity in net losses of its investees. The equity in net losses of investees were caused by: P281 million in goodwill amortizations attributable to its investments in Legend International Resorts (HK) Ltd. (LIR) and MagiNet Corporation, both of which were made in 1997 its 40% share of LIR's net loss, which amounted to P 143 million its 66% share of MagiNet's net loss, which amounted to P344 million. Total assets declined by P476 million from P10,395 million in 1998 to P9,918 million in 1999 mainly because of a decrease in investments, brought about by equitized net losses of certain Sinophil's investees. Total liabilities increased by P144 million due to a rise in accounts payable and accrued expenses. Stockholders equity on the other hand, dropped by P621 million to P7,921 million due to the net loss recognized in 1999. SINOPHIL CORPORATION and Subsidiaries Comparative Income Statement For the Year Ended December 31, 1999 and 1998 (Amounts in Thousands) Unaudited Audited 1999 1998 REVENUES Equity capital adjustment of investee - 584,424 Dividend Income 98,865 98,856 Interest 47 13,611 Foreign exchange gain 5,818 681 104,730 697,572 EXPENSES General and Administrative 22,701 86,715 Foreign exchange loss - 5,446 Equity in net loss of investees 795,957 408,966 818,658 501,127 Pre-tax Income (Loss) (713,928) 196,446 Income Tax - 4,409 Minority Interest - 2,938 Net Income (Loss) (713,928) 189,099 ======= ======= SINOPHIL CORPORATION and Subsidiaries Balance Sheet (Amounts in Thousands) Unaudited Audited 12/31/99 12/31/98 ASSETS Cash and Cash Equivalents 62,121 82,937 Accounts Receivable 425,911 265,412 Investments 8,007,415 8,439,643 Other Assets 1,422,801 1,606,838 9,918,248 10,394,830 ======== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accounts Payable and Accrued Expenses 906,608 709,179 Advances from a Stockholder 26,534 34,136 Long-term Debt 1,025,520 1,071,848 Deferred Tax Liability 22,470 22,470 Minority Interest 16,261 15,519 Stockholders' Equity 7,920,856 8,541,678 9,918,248 10,394,830 ======== ========