TIANYE WATER<08280> - Results Announcement (Final, 2005, Summary)
XINJIANG TIANYE WATER SAVING IRRIGATION SYSTEM COMPANY LIMITED announced on
10/03/2006:
(stock code: 08280 )
Year end date :31/12/2005
Currency :RMB
Auditors' report :Unqualified
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
(Audited) (Audited)
Current Last Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 31/12/2005 to 31/12/2004
$'000 $'000
Turnover : 376,251 389,183
Profit/(Loss) from Operations : 66,200 55,569
Finance cost : (3,566) (3,523)
Share of Profit/(Loss) of Associates : N/A N/A
Share of Profit/(Loss) of Jointly
Controlled Entites : N/A N/A
Profit/(Loss) after Taxation & MI : 52,658 42,432
% Change Over the Last Period : +24.10%
EPS / (LPS)
Basic (in dollar) : RMB 0.17 RMB 0.13
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 52,658 42,432
Final Dividends per Share : RMB 0.0707* N/A
(specify if with other options) : N/A N/A
B/C Dates for Final Dividends : 29/04/2006 to 19/05/2006 bdi.
Payable Date : To be announced
B/C Dates for Annual General Meeting : 29/04/2006 to 19/05/2006 bdi.
Other Distribution for Current Period : NIL
B/C Dates for Other Distribution : N/A
(bdi: both days inclusive)
For and on behalf of
XINJIANG TIANYE WATER SAVING IRRIGATION SYSTEM COMPANY LIMITED
Signature :
Name : Pak Wai Keung, Martin
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. SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared on the
historical cost basis except for financial instruments, which are initially
measured at fair value. The financial statements have been prepared
in accordance with Hong Kong Financial Reporting Standards issued by
Hong Kong Institute of Certified Public Accountants ("HKICPA"). In
addition, the consolidated financial statements include applicable
disclosures required by the Rules Governing the Listing Securities on
the GEM of the Stock Exchnage and the Companies Ordinance in Hong Kong.
The HKICPA has also issued the following standards and interpretations
that are not yet effective. In the opinion of the directors of the
Company, except for the financial impact on adoption of HKAS39 and HKFRS4
(Amendments) "Financial guarantee contracts", the Group has considered
the following standards and interpretations but does not expect they
will have a material effect on how the results of operations and
financial position of the Group are prepared and presented.
The Group is not yet in a position to reasonably estimate the impact
on adoption of HKAS39 & HKFRS4 (Amendments)
HKAS 1 (Amendment) Capital disclosures 1
HKAS 19 (Amendment) Actuarial gains and losses, group plans and
disclosures 2
HKAS 21 (Amendment) Net investment in a foreign operation 2
HKAS 39 (Amendment) Cash flow hedge accounting of forecast intragroup
transactions 2
HKAS 39 (Amendment) The fair value option 2
HKAS 39 & HKFRS 4 Financial guarantee contracts 2
(Amendments)
HKFRS 6 Exploration for and evaluation of mineral
resources 2
HKFRS 7 Financial instruments: Disclosures 1
HK(IFRIC) ˇX INT 4 Determining whether an arrangement contains a
lease 2
HK(IFRIC) ˇX INT 5 Rights to interests arising from decommissioning,
restoration and environmental rehabilitation funds 2
HK(IFRIC) ˇX INT 6 Liabilities arising from participating in a
specific market, waste electrical and electronic
equipment 3
HK(IFRIC) ˇX INT 7 Applying the restatement approach under HKAS 29
Financial Reporting in Hyperinflationary Economies 4
1 Effective for annual periods beginning on or after 1 January 2007.
2 Effective for annual periods beginning on or after 1 January 2006.
3 Effective for annual periods beginning on or after 1 December 2005.
4 Effective for annual periods beginning on or after 1 March 2006.
The principal accounting policies adopted are set out as below:
Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company and its subsidaries (i.e. entities controlled
by the Company). Control is achieved where the Company has the power
to govern the financial and operating policies of an entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the
year are included in the consolidated income statement from
the effective date of acquisition or up to the effective date of
disposal, as appropriate.
Where necessary, adjustments are made to the financial statements
of subsidiaries to bring their accounting policies into line with
those used by other members of the Group.
All intra-group transactions, balances, income and expenses are
eliminated on consolidation.
Minority interests in the net assets of consolidated subsidiaries
are identified separately from the Groupˇ¦s equity therein. Minority
interests consist of the amount of those interests at the date of
the original business combination and the minority's
share of changes in equity since the date of the combination. Losses
applicable to the minority in excess of the minorityˇ¦s interest
in the subsidiaryˇ¦s equity are allocated against the interests of
the Group except to the extent that the minority has a binding
obligation and is able to make an additional investment to cover
the losses.
2. TURNOVER
Turnover is measured at the fair value of the consideration received
and receivable for goods sold, net of returns and value-added tax
and revenue arising on long-term contracts during the year, and is
analysed as follows:
2005 2004
RMBˇ¦000 RMBˇ¦000
Sales of goods to:
ˇX outsiders 354,380 334,555
ˇX Tianye Holdings Group 17,872 22,622
Revenue from long-term contracts 3,999 32,006
---------- ---------
376,251 389,183
========== =========
3. TAXATION
During each of the two years ended 31st December, 2004 and 31st
December, 2005, pursuant to the relevant laws and regulations in
the PRC, the Company and its subsidiaries were subject to PRC
Enterprise Income Tax ("EIT") of 33Pursuant to "Notice of Problem on
Certain Incentives Policy on the Development of Western China"
Cai Shui Zi [2001] No. 202, for an entity operated in the western
past of the PRC which is mainly engaged in the business prescribed in
(Industries currently encouraged to be developed by the State, Technical
Catalog of Products)(2000 Revision) and that such business contributes
to over 70% of its operating income (the "Prescribed Business),
such entity is entitled to specific tax relief. Other than Tianye
Installation which business is not regarded as Prescribed Business, the
entities comprising the Group satisfied these requirements and, on the
assumptions that they will continue to meet these requirements in the
relevant periods, these entities were entitled to certain tax
relief as follows:
Name of entity 2005 2004
EIT rate EIT rate
The Company 15% 15%
Tianye Recycling Exempted Exempted
Gansu Tianye 15% 15%
Tianye Installation 33% 33%
Alaer Tiannong Exempted Exempted
Hami Tianye 15% 15%
The EIT for the year ended 31st December, 2005 is calculated at the EIT
rate applicable to each of the entities comprising the Group as shown
above.
The charge for the year can be reconciled to the profit per the income
statementas follows:
2005 2004
RMBˇ¦000 RMBˇ¦000
Profit before taxation 62,634 52,046
Tax at the statutory EIT rate of 33% 20,670 17,175
Tax effect on expenses not deductible
for tax purposes 3,122 3,009
Tax effect on deferred tax assets not recognised 348 827
Effect of tax exemption and reduction granted
to the Group (16,545) (13,060)
------- -------
Tax expenses 7,595 7,951
======= =======
There was no significant deferred taxation for the year or at the
balance sheet date.
4. DIVIDENDS
A final dividend of RMB0.0707 per share has been proposed by the
directors in respect of the year ended 31st December, 2005 and is
subject to approval by the shareholders in general meeting.
5. EARNINGS PER SHARE ˇX BASIC
The calculation of the basic earnings per share for the year ended 31st
December,2005 is based on the profit for the year attributable to
equity holders of the Company of RMB52,658,000 (2004 : RMB42,432,000)
and 317,121,560 shares in issue during the year (2004 : 317,121,560
shares)
*If the over-allotment is exercised in full final dividen per share
will be RMB0.0671.
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