FIRST MOBILE<08110> - Results Announcement
First Mobile Group Holdings Limited announced on 12/08/2005:
(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 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
Turnover : 3,174,806 2,985,251
Profit/(Loss) from Operations : 4,583 85,073
Finance cost : (19,985) (14,686)
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 : (22,032) 49,196
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0113) 0.0253
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (22,032) 49,196
2nd Quarter Dividend : Nil Nil
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
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
This unaudited condensed consolidated financial information
has been prepared in accordance with Hong Kong Accounting
Standard ("HKAS") 34 "Interim Financial Reporting" issued
by the Hong Kong Institute of Certified Public Accountants.
This condensed consolidated financial information should be
read in conjunction with the 2004 annual financial statements.
The accounting policies and methods of computation used in
the preparation of this condensed consolidated financial
information are consistent with those used in the annual
financial statements for the year ended 31st December 2004
except that the Group has changed certain of its accounting
policies following its adoption of new/revised Hong Kong
Financial Reporting Standards and Hong Kong Accounting
Standards ("new HKFRS") which are effective for accounting
periods commencing on or after 1st January 2005.
This interim financial information has been prepared in
accordance with those HKFRS standards and interpretations
issued and effective as at the time of preparing this
information. The HKFRS standards and interpretations
that will be applicable at 31st December 2005, including
those that will be applicable on an optional basis, are not
known with certainty at the time of preparing this
interim financial information.
The changes to the Group's accounting policies and the
effect of adopting these new policies are set out in
note 2 below.
2. Changes in accounting policies
Effect of adopting new HKFRS
In 2005, the Group adopted the new/revised standards of
HKFRS below, which are relevant to its operation. The
2004 comparatives have been amended as required, in
accordance with the relevant requirements:-
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
The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12,
14, 16, 18, 19, 21, 23, 24, 27, 33, 37 and HKFRS 2, 3
did not result in substantial changes to the Group's
accounting policies. In summary:
- HKAS 1 has affected the presentation of minority
interest and other disclosures.
- HKASs 2, 7, 8, 10, 12, 14, 16, 18, 19, 23, 27, 33,
37 and HKFRS 2, 3 had no material effect on the
Group's policies.
- HKAS 21 had no material effect on the Group's
policy. The functional currency of each of
the consolidated entities has been re-evaluated
based on the guidance to the revised standard.
All the Group entities have the same functional
currency as the presentation currency for
respective entity financial statements.
- HKAS 24 has affected the identification of
related parties and some other related-party
disclosures.
(i) HKAS17 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 building 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
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.
(ii) 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.
(iii) 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 are
carried at either amortised cost or fair value,
depending on their classification. Movements in
fair value are 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.
3. 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
six months ended 30th June, 2005.
(ii) Taxation on overseas profits has been calculated on the
estimated assessable profits for the six months ended
30th June, 2005 at the rates of taxation prevailing in
the countries in which the Group operates.
4. Dividend
The Directors of the Company do not recommend the payment of
an interim dividend for the six months ended 30th June, 2005
(2004 : nil).
5. Earnings per share
Basic loss per share for the six months ended 30th June, 2005
is calculated based on the loss of HK$22,032,000
attributable to equity holders of the Company
(2004 : profit of HK$49,196,000) and on the weighted
average number of 1,945,696,565 shares
(2004: 1,945,696,565 shares) in issue during the
period.
Diluted earnings per share for the six months ended
30th June, 2005 is not presented as there were no
dilutive potential shares as at 30th June, 2005.
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