KO YO GROUP<08042> - Results Announcement (Q1, 2006, Summary)
Ko Yo Ecological Agrotech (Group) Limited announced on 10/05/2006:
(stock code: 08042 )
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 : 177,434 142,924
Profit/(Loss) from Operations : 15,424 15,793
Finance cost : (1,166) (1,745)
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 : 12,493 12,011
% Change Over the Last Period : +4.01%
EPS / (LPS)
Basic (in dollar) : RMB 2.96 RMB 2.85
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 12,493 12,011
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
Ko Yo Ecological Agrotech (Group) Limited
Signature :
Name : Man Au Vivian
Title : Director
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 Hong Kong Institute of Certified Public Accountant ("HKICPA") has
undertaken to converge by 1 January 2005 all Hong Kong Financial
Reporting Standards ("HKFRSs") with International Financial Reporting
Standards ("IFRSs") issued by the International Accounting Standards
Board. As a result, the HKICPA had aligned HKFRSs with the requirements
of IFRSs in all materials respects as at 31 December 2004. The
accounts have been prepared under the historical cost convention.
The adoption of HKFRS 2 has resulted in a 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. Following the adoption of HKFRS 2, the fair value of
share options at grant date is amortised over the relevant vesting
periods to the profit and loss account. The Company has not
applied this HKFRS retrospectively as share options of the Company
granted after 7 November 2002 had vested at 1 January 2005.
The adoption of HKFRS 3 has resulted in a change in the accounting
policy for negative goodwill. Prior to this, negative goodwill
was recognized as income on a straight-line basis in the profit
and loss account over the remaining weighted average useful
life of assets acquired of 30 years. In accordance with the
provision of HKFRS 3, the carrying amount of previously
recognized negative goodwill as at 1 January 2005 shall be
derecognized with a corresponding adjustment to the opening
balance of retained earnings.
The adoption of other new HKFRS does not result in substantial
changes to the Group's accounting policies except certain
presentation and disclosure of the accounts will be affected.
2. Turnover
Turnover represents the net amounts received and receivable
for chemical products and chemical fertilizers sold, less returns
and allowances and value-added taxes, if applicable, during the
three-month period. The Group's revenues are primarily
generated in the People's Republic of China (the "PRC").
3. Taxation
No provision for profits tax in the Cayman Islands, the British
Virgin Islands or Hong Kong has been made, as the Group had no
assessable profit arising in or derived from those jurisdictions
during the three months ended 31 March 2006.
Chengdu Ko Yo Chemical Industry Co., Ltd. ("Chengdu Ko Yo
Chemical"), Chengdu Ko Yo Compound Fertilisers Co., Ltd.
("Chengdu Ko Yo Compound"), Dezhou Ko Yo Compound Fertiliser
Co., Ltd. ("Dezhou Ko Yo Compound"), Dazhou City Dazhu Ko Yo
Chemical Industry Co., Ltd. ("Dazhu Ko Yo Chemical") and
Qingdao Ko Yo Chemical Co., Ltd. ("Qingdao Ko Yo Chemical")
were established as foreign investment enterprises in the PRC.
They are subject to Enterprise Income Tax ("EIT") at the rate
of 15%, 15%, 33%, 15% and 15% respectively, and are entitled
to full exemption from EIT in the first two profitable years
and a 50% reduction for the next three years thereafter.
The preferential EIT rate applicable for Chengdu Ko Yo Chemical
in 2006 is 15%. Pursuant to relevant taxation regulations of the
PRC and as approved by the local taxation bureau, Chengdu Ko
Yo Chemical was entitled to deduct from its EIT expenses for
an amount of 40% of cost of certain machinery acquired from
the PRC enterprises, which are local machinery suppliers and
unrelated to the Group. Accordingly, EIT provision made for
Chengdu Ko Yo Chemical for the three months ended 31
March 2006 was RMB1,310,000.
The EIT provision made for and preferential EIT rate applicable
to Chengdu Ko Yo Compound for the three months ended
31 March 2006 are approximately RMB455,000 and 7.5%.
Dezhou Ko Yo Compound, Dazhu Ko Yo Chemical and Qingdao Ko Yo
Chemical did not have EIT payable for the three months ended
31 March 2006.
4. Earnings per share
The calculation of basic earnings per share for the three months
ended 31 March 2006 is based on the consolidated profit
attributable to shareholders of approximately RMB12,493,000
(2005: RMB12,011,000) and the weighted average number
of approximately 421,820,000 (2005: 421,820,000) ordinary
shares in issue during the periods. Diluted earnings per share is
not presented as there were no dilutive potential ordinary shares.
5. Dividend
The Board does not recommend the payment of interim dividend
for the three months ended 31 March 2006 (31 March 2005: Nil).
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