RECRUIT<08073> - Results Announcement Recruit Holdings Limited announced on 12/08/2005: (stock code: 08073 ) 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 30/06/2005 to 30/06/2004 Note ('000 ) ('000 ) Turnover 3 : 86,013 44,149 Profit/(Loss) from Operations 4 : 14,748 11,351 Finance cost : 18 0 Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 19,310 11,323 % Change over Last Period : +71 % EPS/(LPS)-Basic (in dollars) 5 : 0.0708 0.0580 -Diluted (in dollars) 5 : 0.0701 0.0577 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 19,310 11,323 2nd Quarter Dividend : N/A N/A per Share (Specify if with other : N/A N/A options) B/C Dates for 2nd 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 Recruit Holdings Limited Name : Ho Suk Yi 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: Notes: 1. Basis of preparation The unaudited interim financial statements have been prepared in accordance with the applicable disclosure requirements of Chapter 18 of the Rules Governing the Listing of Securities on the Growth Enterprise Market of the Stock Exchange of Hong Kong Limited ("the GEM Listing Rules") and with Hong Kong Accounting Standard 34 (HKAS 34) Interim Financial Reporting. The accounting policies used in the condensed financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31st December 2004 except those mentioned in note 2 below. 2. Changes in accounting policies In the current period, the Group has applied, for the first time, a number of new Hong Kong Financial Reporting Standards ("HKFRSs"), Hong Kong Accounting Standards ("HKASs") and Interpretations (hereinafter collectively referred to as "new HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants that are effective for accounting periods beginning on or after 1st January 2005. The adoption of the new HKFRSs has resulted in changes to the Group's accounting policies in the following areas that have an effect on how the results for the current or prior accounting periods are prepared and presented. The adoption of HKFRS 2 Share-based Payments requires all share options granted to employees or other parties to be recognized in the financial statements. The fair value of the share options at grant date will be amortized over the relevant vesting periods to the income statement. HKFRS 2 has been applied retrospectively for share options granted to employees after 7th November 2002 and not vested at 1st January 2005. Following the adoption of this accounting policy, the amount of employee share-based expenses of approximately HK$209,000 and approximately HK$142,000 were charged to the income statements for the period ended 30th June 2005 and 30th June 2004 respectively. Employee share-based expense of approximately HK$466,000 was recognised in the income statement for the year ended 31st December 2004 as prior year adjustment. In accordance with the provisions of HKFRS 3 Business Combination, the carrying amount of negative goodwill that arose from a business combination for which the agreement date was before 1st January 2005 shall be derecognized by way of a corresponding adjustment to the opening balance of accumulated losses as at 1st January 2005. HKFRS 3 has been applied retrospectively. Accordingly, the carrying amount of negative goodwill of HK$13,440,000 was credited to the accumulated losses at 1st January 2004 and 2005. The reconciliations of equity and profit /loss for comparative periods reported under previous HKGAAP to those reported under new HKFRSs are set out in the consolidated statement of changes in equity. 3. Turnover Six months ended 30th June 2005 2004 HK$'000 HK$'000 Advertising income 67,487 43,999 Printing income 18,518 - Publication sales 3 - Service income 5 150 ------------------------- 86,013 44,149 ========================= 4. Profit from operations Profit from operations has been arrived at after charging (crediting): Six months ended 30th June 2005 2004 HK$'000 HK$'000 Depreciation 1,578 720 Staff costs 13,346 7,686 Operating leases rental in respect of Rented premises 1,187 606 Internet access line 42 49 Interest income (37) (37) Rental income (620) - Gain on disposal of listed securities (20) - 5. Earnings per share The calculation of the basic and diluted earnings per share is based on the following data: Six months ended 30th June 2005 2004 HK$'000 HK$'000 (Restated) Earnings for the purposes of basic and diluted earnings per share for the period 19,310 11,323 =========================== Number of shares ('000) Weighted average 272,944 195,308 number of ordinary shares for the purposes of basic earnings per share Effect of dilutive potential ordinary shares in respect of share options granted 2,471 826 --------------------------- Weighted average number of ordinary shares for the purposes of diluted earnings per share 275,415 196,134 =========================== |