TIANYE WATER<08280> - Results Announcement (Q1, 2006, Summary)
XINJIANG TIANYE WATER SAVING IRRIGATION SYSTEM COMPANY LIMITED announced on
28/04/2006:
(stock code: 08280 )
Year end date :31/12/2006
Currency :RMB
Auditors' report :N/A
1st 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 01/01/2006 from 01/01/2005
to 31/03/2006 to 31/03/2005
RMB '000 RMB '000
Turnover : 107,027 91,255
Profit/(Loss) from Operations : 11,935 9,830
Finance cost : (1,176) (1,203)
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 : 8,760 7,368
% Change Over the Last Period : +18.89%
EPS / (LPS)
Basic (in dollar) : RMB 0.023 RMB 0.023
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 8,760 7,368
1st Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 1st 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
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. BASIS OF PREPARATION
The Company was incorporated as a joint stock company with limited
liability in the People's Republic of China (the "PRC ") on
18th December, 2003 and upon the placing of its H shares, was
listed on the GEM on 28th February, 2006. It's ultimate holding
company is Xinjiang Tianye (Group) Limited, incorporated in Xinjiang,
the PRC.
These consolidated financial statements incorporate the financial
statements of the Company and entities under the control of 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.
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 consisted of the minority's share of changes in equity since
the date of the combination. Losses applicable to the minority in
excess of the minority's interests in the subsidiary'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. ACCOUTNING POLICIES
The accounting policies adopted in preparing the unaudited consolidated
financial results were in consistent with those applied for the financial
statements of the Group for the year ended 31st December, 2005.
3. TURNOVER
Turnover is measured at the fair value of the consideration
received and receivable for goods sold, net of returns, provisions
and value-added tax and revenue arising on long-term contracts
during the 3 months periods ended 31st March, 2006.
4. TAXATION
Income tax expense represents the sum of the tax currently payable
and deferred tax.
Pursuant to the relevant laws and regulations in the PRC, the
Company and its subsidiaries were subject to PRC Enterprise Income
Tax (EIT) of 33%. Pursuant 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
part 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 Shihezi Development Zone Tianye Water Saving Engineering
Installation Company Limited 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:
for the period from 1st January, 2002 to 31st December, 2010.
The Company was granted a reduced EIT tax rate of 15% for the seven
years ending 31st December, 2010.
Gansu Zhangye Tianye Water Saving Equipment Company Limited, a
subsidiary of the Group, was granted a reduced EIT tax rate of 15%
for the period from 1st January, 2002 to 31st December, 2010.
Hami Tianye Hongxing Water Saving Irrigation Company Limited, a
subsidiary of the Group, was granted a reduced EIT tax rate of 15%
for the period from 1st January, 2004 to 31st December, 2007.
7. BASIC EARNINGS PER SHARE
The calculation of the basic earnings per share for the period ended
31st March, 2006 is based on the profit for the period attributable
to equity holders of the Company and on the weighted average number of
382,046,004 shares (2005: 317,121,560 shares) in issue during the
period. Basic earnings per share is RMB0.023 (2005: RMB0.023).
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