FIRST MOBILE<08110> - Results Announcement
First Mobile Group Holdings Limited announced on 13/05/2005:
(stock code: 08110 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
Important Note:
This result announcement form only contain extracted information
from and should be read in conjunction with the detailed results
announcement of the issuer, which can be view on the GEM website
at http://www.hkgem.com
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 31/03/2005 to 31/03/2004
Note ('000 ) ('000 )
Turnover : 1,538,621 1,607,415
Profit/(Loss) from Operations : (18,443) 54,657
Finance cost : (8,276) (7,027)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (25,781) 31,159
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0133) 0.016
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (25,781) 31,159
1st Quarter Dividend : Nil Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
1st Quarter Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
For and on behalf of
First Mobile Group Holdings Limited
Name : Dyland Mah
Title : Company Secretary
Responsibility statement
The directors of the Company (the "Directors") as at the date hereof
hereby collectively and individually accept full responsibility for
the accuracy of the information contained in this results announcement
form (the "Information") and confirm, having made all reasonable
inquiries, that to the best of their knowledge and belief the
Information are accurate and complete in all material respects and
not misleading and that there are no other matters the omission of
which would make the Information herein inaccurate or misleading. The
Directors acknowledge that the Stock Exchange has no responsibility
whatsoever with regard to the Information and undertake to indemnify
the Exchange against all liability incurred and all losses suffered
by the Exchange in connection with or relating to the Information.
Remarks:
1. Basis of preparation and accounting policies
The Hong Kong Institute of Certified Public Accountants
("HKICPA") has issued a number of new and revised Hong Kong
Financial Reporting Standards and Hong Kong Accounting
Standards ("HKAS") (collectively "HKFRSs") which are
effective for accounting periods beginning on or after
1st January, 2005. The Group has adopted these HKFRSs
in the accounts for the year ending 31st December, 2005.
The unaudited consolidated profit and loss account is
extracted from the unaudited consolidated accounts of the
Company which have been prepared in accordance with HKFRSs
issued by the HKICPA, and the disclosure requirements of the
Rules Governing the Listing of Securities on the Growth
Enterprise Market of the Stock Exchange of Hong Kong ("the
GEM Listing Rules"). They have been prepared under the
historical cost convention, as modified by the revaluation
of financial instruments at fair value. The applicable new
HKFRSs are set out below :
HKAS 1 Presentation of Financial Statements
HKAS 2 Inventories
HKAS 7 Cash Flow Statements
HKAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
HKAS 10 Events after Balance Sheet Date
HKAS 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The Effects of Changes in Foreign
Exchange Rates
HKAS 23 Borrowing Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial
Statements
HKAS 32 Financial Instruments: Disclosure and
Presentation
HKAS 33 Earnings Per Share
HKAS 36 Impairment of Assets
HKAS 37 Provisions, Contingent Liabilities and
Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and
Measurement
HKFRS 2 Share-based Payment
HKFRS 3 Business Combinations
All new standards adopted by the Group require
retrospective application other than those specifically
allowed under the transitional provisions in the relevant
standards. The following is a summary of significant
changes to the principal accounting policies adopted in the
preparation of the 2004 annual accounts as a result of the
adoption of the new HKFRSs in 2005.
(a) HKAS 17 Leases
The adoption of HKAS 17 has resulted in a change in
accounting policy relating to leasehold land.
Leasehold land was previously stated at fair value.
In accordance with the provisions of HKAS 17, leasehold
properties are split into a lease of land and a lease of
building in proportion to the relative fair values of
the interests in the land element and the building
element of the lease at the inception of the
lease. The lease premium for leasehold land is stated
at cost and amortised over the period of the lease.
HKAS 17 has been applied retrospectively.
Building portion of freehold and leasehold properties
was previously stated at fair value. Following the
adoption of HKAS 17 where leasehold land is subject
to amortisation, the accounting policy on buildings
is changed and buildings are now stated at cost less
accumulated depreciation and impairment. This
change in accounting policy has been applied
retrospectively.
As of 1st January, 2005, the effect of these changes
in accounting policies is to decrease the net book
value of freehold and leasehold properties by
HK$9,462,000 (1st January, 2004: to increase by
HK$7,117,000), to increase deferred tax assets by
HK$1,370,000 (1st January, 2004 : to decrease by
HK$280,000), to decrease deferred tax liabilities
by HK$894,000 (1st January, 2004 : to increase by
HK$120,000), to increase retained earnings by
HK$5,333,000 (1st January, 2004 : HK$9,837,000) and
to decrease properties revaluation reserve by
HK$12,531,000 (1st January, 2004 : HK$3,120,000)
respectively.
(b) HKFRS 3 Business Combinations; HKAS 36 Impairment
of Assets and HKAS 38 Intangible Assets
The adoption has resulted in a change in
accounting policy for goodwill. Goodwill was
previously amortised on a straight-line basis
over a period of not exceeding 20 years, and
assessed for impairment at each balance sheet
date.
Under HKFRS 3, goodwill is no longer amortised.
Instead, it is tested for impairment annually, or
more frequently, if events or changes in
circumstances indicate a possible impairment. Any
excess of fair value of assets and liabilities
acquired over cost is recognised immediately as
income under HKFRS 3. However, HKFRS 3 requires,
if an entity previously recognised goodwill as a
deduction from equity, it shall not recognise that
goodwill in profit and loss account when it
disposes of all or part of the business to
which that goodwill relates or when a
cash-generating unit to which the goodwill
relates becomes impaired. There is no
transitional arrangement for goodwill which has
previously been eliminated against reserves as
a matter of accounting policy.
HKFRS 3 is applied prospectively from 1st January,
2005. Under the transitional provision of HKFRS 3,
the Group has to cease amortisation of goodwill
from 1st January, 2005, and the negative goodwill
previously recognised has to be derecognised
as at 1st January, 2005, with a corresponding
adjustment to the opening retained earnings.
As of 1st January, 2005, the effect of these changes
in accounting policies is to decrease the capital
reserve by HK$162,000 and to increase the retained
earnings by the same amount.
(c) HKAS 32 Financial Instruments: Disclosure and
Presentation and HKAS 39 Financial Instruments:
Recognition and Measurement
HKAS 32 and HKAS 39 establish principles for
disclosure, presentation, recognition and
measurement of financial instruments, including
non-derivative financial assets, non-derivative
financial liabilities and derivative instruments
for hedging activities.
Under HKAS 39, financial instruments will be
carried at either amortised cost or fair value,
depending on their classification. Movements in
fair value will be either charged to net profit or
loss or taken to equity in accordance with the
standard. In addition, all derivatives, including
those embedded in non-derivatives host contracts
are recognised in the balance sheet at fair value.
The effect of adopting HKAS 39 is insignificant to
the accounts.
2. Taxation
(i) Hong Kong profits tax has been provided at the rate of
17.5% (2004 : 17.5%) on the estimated assessable profits
for the three months ended 31st March, 2005.
(ii) Taxation on overseas profits has been calculated on the
estimated assessable profits for the three months ended
31st March, 2005 at the rates of taxation prevailing in
the countries in which the Group operates.
3. Dividend
The Directors do not recommend the payment of an interim
dividend for the three months ended 31st March, 2005
(2004 : nil).
4. Loss per share
Basic loss per share for the three months ended 31st
March, 2005 is calculated based on the loss attributable
to equity holders of the Company of HK$25,781,000
(2004 : earnings of HK$31,159,000) and on the weighted
average number of 1,945,696,565 (2004 : 1,945,696,565)
shares in issue during the period.
Diluted loss per share for the three months ended 31st
March, 2005 is not presented as the Company has no
dilutive potential shares as at 31st March, 2005 (2004 :
not applicable).
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