PANVA GAS HOLD<08132> - Results Announcement (Q2, 2005, Summary) (Revised)
Panva Gas Holdings Limited announced on 12/8/2005:
(stock code: 08132 )
Year end date :31/12/2005
Currency :HKD
Auditors' report :N/A
2nd Quarterly Report Reviewed by :Audit Committee
Important Note :
This result announcement form only contains extracted information from
and should be read in conjunction with the detailed results announcement
of the issuer, which can be viewed on the GEM website at
http://www.hkgem.com
(* Unaudited) (* Unaudited)
Current Last Corresponding
Period Period
from 1/1/2005 from 1/1/2004
to 30/6/2005 to 30/6/2004
$'000 $'000
Turnover : 958,053 848,634
Profit/(Loss) from Operations : 169,744 119,851
Finance cost : 37,860 5,155
Share of Profit/(Loss) of Associates : 28,561 N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 128,249 95,699
% Change Over the Last Period : +34.01%
EPS / (LPS)
Basic (in dollar) : HKD 13.61 HKD 10.24
Diluted (in dollar) : HKD 12.75 HKD 9.44
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 128,249 95,699
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd Quarter Dividends : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)
For and on behalf of
Panva Gas Holdings Limited
Signature :
Name : Gerald Yu
Title : Chief Financial Officer
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. General
The Company was incorporated in Cayman Islands on 16 November
2000 as an exempted company with limited liability under the
Companies Law (Revised) Chapter 22 of the Cayman Islands. The Company's
shares have been listed on the Growth Enterprise Market ("GEM") of
The Stock Exchange of Hong Kong Limited ("Stock Exchange") since
20 April 2001.
The Company is an investment holding company. Its subsidiaries are
principally engaged in the sale and distribution of liquefied petroleum
gas ("LP Gas") and natural gas (together "Gas Fuel") in the People's
Republic of China including the sale of LP Gas in bulk and in cylinders,
the provision of piped LP Gas and natural gas, construction of gas
pipelines, the operation of city gas pipeline network, the operation
of Gas Fuel automobile refilling stations and the sale of LP Gas and
natural gas household appliances.
a. Statement of compliance
The Hong Kong Institute of Certified Public Accountants ("HKICPA",
formerly the Hong Kong Society of Accountants) has undertaken to
converge by 1 January 2005 all Hong Kong Financial Reporting standards
("HKFRS") with International Financial Reporting Standards ("IFRS")
issued by the International Accounting Standards Board. As a result,
the HKICPA has aligned HKFRS with the requirements of IFRS
in all material respects as at 31 December 2004. The
accounts have been prepared in accordance with HKFRS
issued by the HKICPA, requirements of the Hong Kong Companies
Ordinance and applicable disclosure requirements of the Rules
Governing the Listing of Securities on the Growth Enterprises
market of The Stock Exchange of Hong Kong Limited ("GEM Listing Rules").
b. Basis of preparation
The accounts have been prepared under the historical cost convention,
as modified by the revaluation of leasehold buildings, available-for-sale
financial assets and financial assets and financial liabilities at
fair value through profit or loss.
The preparation of financial statements in conformity with HKFR requires
the use of certain critical accounting estimates. It also requires
management to exercise its judgment in the process of applying the
Group's accounting policies. The areas involving higher degree of
judgment or complexity, or areas where assumptions and estimates are
significant to the consolidated accounts.
Adoption of HKFRS
For the financial year commencing 1 January 2005, the Group has adopted
all HKFRS in issue pertinent to its operations. The applicable HKFRS
are set out below and the 2004 figures have been restated 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 11 Construction Contracts
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 Statement
HKAS 28 Investments in Associates
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 34 Interim financial reporting
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 Payments
HKFRS 3 Business Combinations
The adoption of HKAS 1, 2, 7,8,10,11,12,14,16,18,19,21,23,24,27
,28,33,34 and 37 did not result in substantial changes to the
Group's accounting policies. In summary:
i. HKAS 1 affects certain presentation in the consolidated balance sheet
, consolidated profit and loss account and consolidated statement of
changes in equity.
ii. HKAS 2, 8, 16, 21 and 28 affect certain disclosure of the accounts.
iii. HKAS 7, 10, 11, 12, 14, 18, 19, 23, 27, 33, 34 and 37 do not have
any impact as the Group's accounting policies already comply
with the standards.
iv. HKAS 24 affects the identification of related parties
and the disclosure of related party transactions.
The adoption of HKAS 17 has resulted in a change in accounting
policy relating to leasehold land. Leasehold land and buildings
were previously carried at valuation less accumulated depreciation.
In accordance with the provisions of HKAS 17, a lease of land and
building should be split into a lease of land and a lease of building
in proportion to the relative fair values of the leasehold interests
in the land element and the building element of the lease at the
inception of the lease. The lease premium for land is stated at cost
and amortised over the period of the lease whereas the leasehold
building is stated at valuation less accumulated depreciation.
The adoption of HKFRS 2 has resulted in change in accounting policy
for employee share options. Prior to this, the provision of share
options to employees did not result in a charge to
the profit and loss account.
The adoption of HKFRS 3, HKAS 36 and HKAS 38 has resulted in a change
in the accounting policy for goodwill. Prior to this, goodwill was:
i. amortised on a straight-line basis over a period of not
exceeding 20 years; and
ii. assessed for the impairment at each balance sheet date.
In accordance with the provisions of HKFRS 3:
i. the Group ceased amorisation of goodwill from 1 January 2002;
ii. accumulated amortisation as at 31 December 2002 has been eliminated
with a corresponding decrease in the cost of goodwill;
iii. from the year ended 31 December 2003 onwards, goodwill is tested
annually for impairment, as well as when there are
indications of impairment.
The adoption of HKAS 32 and HKAS 39 has resulted in a change
in accounting policy for recognition, measurement, derecognition
and disclosure of financial instruments. Until 31 December 2004,
investments of the Group were classified into non-trading securities
and trading securities, and were stated in the balance sheet at fair
value. Bank deposits with embedded derivatives for yield enhancement
were treated as bank deposits and stated at cost.
In accordance with the provisions of HKAS 39, the investments have
been classified into available-for-sale financial assets, financial
assets at fair value through profit or loss and loans and receivables
(which include bank deposits and cash and cash equivalents). The
classification depends on the purpose for which the investments were
held. For debt securities and bank deposits with embedded derivatives
for yield enhancement, where the economic characteristics and the
risks of such derivatives are not closely related to the bank
deposits and debt securities, all such bank deposits, debt securities
and the embedded derivatives are designated as financial assets at
fair value through profit or loss and with changes in fair value
recognized in the profit and loss account. Interest income for
financial assets at fair value through profit or loss is included
as net realized and unrealized gains/(losses) and interest income
of financial assets at fair value through profit or loss.
All relevant changes in the accounting policies have been made
in accordance with the provisions of the respective standards, which
require retrospective application to prior year
comparatives other than:
i. HKFRS 2 - retrospective application of all equity instruments
granted to employees after 7 November 2002 and not
vested at 1 January 2004;
ii. HKFRS 3 - prospectively after 1 January 2002;
iii. HKAS 39 - prospectively from 1 January 2005.
Effect of changes in the accounting policies on consolidated
profit and loss account
Effect of adoption
_________________________________________________
HKFRS3
HKAS8# HKAS36* HKAS32#
& & &
HKAS17# HKFRS2# HKAS38* HKAS39^ Total
$'000 $'000 $'000 $'000 $'000
_______________________________________________________________________
For the six months
ended 30 June 2004
Decrease in amortisation 20 - - - 20
and depreciation of
property, plant and
equipment
Increase in minority (12) - - - (12)
interests' ("MI's") share
of results for the period
Decrease in amortisation - - 619 - 619
of goodwill
Decrease in release of - - (284) - (284)
of negative goodwill
to consolidated income
statement
___________________________________________
Increase in net profit for 8 - 335 - 343
the period
===========================================
Increase in basic earning - - 0.04 - 0.04
per share (HK cents) ===========================================
HKFRS3
HKAS8# HKAS36* HKAS32#
& & &
HKAS17# HKFRS2# HKAS38* HKAS39^ Total
$'000 $'000 $'000 $'000 $'000
_______________________________________________________________________
For the six months
ended 30 June 2005
Interest in staff costs - (10,038) - - (10,038)
and related expenses
Decrease in amorisation 20 - - - 20
and depreciation of
property, plant and
equipment
Increase in MI's (12) - - - (12)
share of results for
the period
Decrease in amortisation - - 2,373 - 2,373
of goodwill
Decrease in release of - - (692) - (692)
negative goodwill to
consolidated income statement
Decrease in effective interest - - - 562 562
on convertible bonds
Effective interest on - - - 596 596
guaranteed senior notes
Increase in negative fair - - - (4,833) (4,833)
value of derivatives
__________________________________________
Increase (decrease) in net 8 (10,038) 1,681 (3,675)(12,024)
profit for the period
==========================================
Increase (decrease) in - (1.07) 0.18 (0.39) (1.28)
basic earnings per ==========================================
share (HK cents)
* adjustments which take effect prospectively from 1 January 2002
^ adjustments which take effect prospectively from 1 January 2005
# adjustments which take effect retrospectively
2. Earnings per share
The calculation of the earnings per share for the six months ended
30 June 2005 and 30 June 2004 was based on the net profit of
HK$128,249,000 and HK$95,699,000 respectively and on the
weighted average number of 942,251,000 ordinary shares
and 934,705,000 ordinary shares in issue during the
respective periods.
Diluted earnings per share for the period ended 30 June 2005
was calculated based on the net profits of HK$134,894,000
adjusted for the interest on convertible note and on the
weighted average number of 1,057,773,000 shares, adjusted for
the outstanding share options of 17,671,000 shares and
convertible bonds of 97,851,000 shares during the period.
Diluted earnings per share for the period ended 30 June 2004
was calculated based on the net profits of HK$99,318,000
adjusted for the interest on convertible note and on the
weighted average number of 1,052,579,000 shares, adjusted for
the outstanding share options of 20,023,000 shares and
convertible bonds of 97,851,000 shares during the period.
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