ENRIC HOLDINGS<08289> - Results Announcement (Final, 2005, Summary)
Enric Energy Equipment Holdings Limited announced on 22 March 2006:
(stock code: 08289 )
Year end date :31 December 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 1 January 2005 from 1 January 2004
to 31 December 2005 to 31 December 2004
RMB RMB
Turnover : 513,013,890 252,375,698
Profit/(Loss) from Operations : 78,401,746 46,460,977
Finance cost : (7,813,959) (6,082,089)
Share of Profit/(Loss) of Associates : 0 0
Share of Profit/(Loss) of Jointly
Controlled Entites : 0 0
Profit/(Loss) after Taxation & MI : 68,705,694 36,191,118
% Change Over the Last Period : +89.84%
EPS / (LPS)
Basic (in dollar) : RMB 0.225 RMB 0.139
Diluted (in dollar) : RMB 0.224 N/A
Extraordinary (ETD) Gain/(Loss) : 0 0
Profit (Loss) after ETD Items : 68,705,694 36,191,118
Final Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for Final 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
Enric Energy Equipment Holdings Limited
Signature :
Name : Cheong Siu Fai
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. Reorganisation
The Company was incorporated in the Cayman Islands on
28 September 2004 as an exempted company with limited liability
under the Companies Law (Revised), Chapter 22 (Law 3 of 1961,
as consolidated and revised) of the Cayman Islands. Pursuant to
a reorganisation (the "Reorganisation") of the Company and its
subsidiaries completed on 26 September 2005
to rationalise the structure of the Group in
preparation for the public listing of its shares on the
Growth Enterprise Market ("GEM") of The Stock Exchange of
Hong Kong Limited (the "Stock Exchange") , the Company became
the holding company of the subsidiaries now comprising the Group.
The Company's shares were listed on GEM on 18 October 2005.
2. Statement of Compliance
The financial statements have been prepared in accordance
with all applicable Hong Kong Financial Reporting Standards
("HKFRSs"), which collective term includes all applicable
individual Hong Kong Financial Reporting Standards, Hong Kong
Accounting Standards ("HKASs") and Interpretations issued by
the Hong Kong Institute of Certified Public Accountants
("HKICPA"), accounting principles generally accepted in Hong
Kong and the disclosure requirements of the Hong Kong Companies
Ordinance. The HKICPA has issued a number of new and revised
HKFRSs that are effective for accounting periods beginning on
or after 1 January 2005. These new and revised HKFRSs have
been early adopted at the beginning of the year ended 31 December
2003. Up to the date of this announcement, the HKICPA has issued
a number of amendments, new standards and interpretations which
are not yet effective for the accounting period ended
31 December 2005 and which have not been adopted in
the financial statements. The financial statements also comply
with the applicable disclosure provisions of the Rules Governing
the Listing of Securities on the GEM of the Stock Exchange
(the "GEM Listing Rules").
3. Basis of preparation of the financial statements
The Group is regarded as a continuing entity resulting from the
Reorganisation and the consolidated financial
statements have been prepared on the basis that the Company was the
holding company of the Group for both years presented, rather than
from 26 September 2005. Accordingly, the consolidated financial
statements of the Group for the years ended 31 December 2004
and 2005 include the financial statements of the Company and its
subsidiaries with effect from 1 January 2004 or where their
respective dates of incorporation/establishment, or where the
additional interests in Shijiazhuang Enric Gas Equipment Company
Limited ("Enric Gas Equipment") were acquired, at a date later
than 1 January 2004, from the respective dates of incorporation
/establishmentand acquisition of the additional interests in
Enric Gas Equipment, as if the current group structure had
been in existence throughout the two years presented. In the
opinion of the Directors, the consolidated financial statements
prepared on this basis present fairly the results of operations
and the state of affairs of the Group as a whole. The
measurement basis used in the preparation of the financial
statements is the historical cost basis. The preparation
of financial statements in conformity with HKFRSs requires
management to make judgements, estimates and assumptions that
affect the application of policies and reported amounts of
assets, liabilities, income and expenses. The estimates and
associated assumptions are based on historical experience
and various other factors that are believed to be reasonable
under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets
and liabilities that are not readily apparent from
other sources. Actual results may differ from these
estimates. The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate
is revised if the revision affects only that period, or in
the period of the revision and future periods if the
revision affects both current and future periods.
4. Turnover and segment information
The Group is principally engaged in the provision of integrated
business solutions in the gas energy industry and the design,
manufacture and sale of specialised gas equipment. Turnover
represents the sales value of goods sold after allowances for
returns of goods, excludes value added or other sales taxes and
is after the deduction of any trade discounts.
Segment information is presented in respect of the Group's
business segments. Business segment information is chosen as
the primary reporting format because this is more relevant to
the Group¡¦s internal financial reporting. As the Group mainly
operates in the People's Republic of China (the "PRC"),
no geographical segment information is presented.
The business segment of the Group comprises:
(i) the design, manufacture and sale of compressors;
(ii) the design, manufacture and sale of pressure vessels; and
(iii) the provision of integrated business solutions, from the
design and manufacture of gas equipment system to on-site
installation.
5. Income tax
No provision has been made for Hong Kong Profits Tax as
the Group did not have assessable profits subject to
Hong Kong Profits Tax during the year.
Profits of the operating subsidiaries of the Company in the PRC,
namely Enric (Bengbu) Compressor Company Limited ("Enric
Compressor"), Enric Gas Equipmentand Enric (Langfang)
Energy Equipment Integration Company Limited ("Enric
Integration"), are subject to PRC income taxes. The
statutory state income tax rates applicable to Enric
Compressor, Enric Gas Equipment and Enric Integration are
30%, 15% and 30% respectively (2004: 30%, 24% and 30%
respectively). As Enric Compressor, Enric Gas Equipment and
Enric Integration are foreign-invested enterprises, commencing
from the year in which a taxable income is made after
the offset of deductible losses incurred in prior years,
each of Enric Compressor, Enric Gas Equipment and Enric
Integration is entitled to a tax holiday of a tax-free period
for the first and second years and a 50% reduction in
state income tax rate for the third to fifth years. The
statutory local income tax rate applicable to Enric
Compressor, Enric Gas Equipment and Enric Integration
is 3%. Commencing from the year in which a taxable income
is made after the offset of deductible losses incurred in
prior years, Enric Gas Equipment is entitled to a tax holiday
of a tax-free period for the first to fifth years and a
50% reduction in local income tax rate for the sixth to tenth
years. Enric Compressor and Enric Integration are exempted
from local income taxes. Enric Compressor is subject to PRC
state income tax at 15% for the year ended 31 December 2005
(2004: 15%).No provision for PRC income tax has been made by
Enric Gas Equipment and Enric Integration as they are in the
tax holiday of a tax-free period in respect of PRC income
tax for the period from the respective dates of their
establishment to 31 December 2005.
6. Earnings per share
(i) Basic earnings per share
The calculation of basic earnings per share for the year ended
31 December 2005 is based on the profit attributable to ordinary
equity shareholders of the Company of RMB68,705,694 and the
weighted average number of 305,283,288 ordinary shares, after
taking into account the 260,160,000 ordinary shares of the
Company in issue and issuable as at the date of the prospectus,
as if the shares were outstanding throughout the year
ended 31 December 2005, and the issuance of ordinary shares by
conversion of convertible redeemable bonds and placing
during the year ended 31 December 2005. The calculation of
basic earnings per share for the year ended 31 December 2004
was based on the profit attributable to ordinary equity
shareholders of the Company of RMB36,191,118 and on the
260,160,000 ordinary shares of the Company in issue and
issuable as at the date of the prospectus, as if these
shares were outstanding throughout the year ended 31 December
2004
(ii) Diluted earnings per share
The calculation of diluted earnings per share for the year ended
31 December 2005 is based on the profit attributable to ordinary
equity shareholders of the Company of RMB68,705,694 and the
weighted average number of 306,681,163 ordinary shares.
There were no potential dilutive ordinary shares in issue during
the year ended 31 December 2004.
7. Dividends
No dividend has been paid or declared by the Company since its
incorporation. The Directors do not recommend the payment of any
dividend for the year ended 31 December 2005 (2004: nil).
8. Board of Directors
As at the date of this announcement, the executive Directors are
Mr. Wang Yusuo (Chairman), Mr. Cai Hongqiu,Mr. Yu Jianchao,
Mr. Zhao Xiaowen and Mr. Zhou Kexing; the non-executive Director
is Ms. Zhao Baoju; and the independent non-executive Directors are
Mr. Gao Zhengping, Mr. Shou Binan and Mr. Wong Chun Ho.
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