FIRST MOBILE<08110> - Results Announcement First Mobile Group Holdings Limited announced on 11/11/2005: (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 30/09/2005 to 30/09/2004 Note ('000 ) ('000 ) Turnover : 4,930,211 4,574,234 Profit/(Loss) from Operations : 37,530 110,486 Finance cost : (31,252) (22,327) 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 : (11,509) 58,343 % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.0059) 0.03 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (11,509) 58,343 3rd Quarter Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for 3rd 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) 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 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 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 nine months ended 30th September, 2005. (ii) Taxation on overseas profits has been calculated on the estimated assessable profits for the nine months ended 30th September, 2005 at the rates of taxation prevailing in the countries in which the Group operates. 3. Dividend The Directors of the Company do not recommend the payment of an interim dividend for the nine months ended 30th September, 2005 (2004 : Nil). 4. Earnings per share Basic loss per share for the nine months ended 30th September, 2005 is calculated based on the loss of HK$11,509,000 attributable to equity holders of the Company (2004 : profit of HK$58,343,000) 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 nine months ended 30th September 2005 is not presented as there were no dilutive potential shares as at 30th September, 2005. |