JF FURNISHINGS<08310> - Results Announcement (Q2, 2006, Summary)
JF Household Furnishing Limited announced on 11/08/2006:
(stock code: 08310 )
Year end date :31/12/2006
Currency :HKD
Auditors' report :N/A
2nd 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 30/06/2006 to 30/06/2005
$'000 $'000
Turnover : 68,809 94,792
Profit/(Loss) from Operations : 9,894 14,262
Finance cost : (426) (588)
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 : 6,538 11,928
% Change Over the Last Period : -45.19%
EPS / (LPS)
Basic (in dollar) : HKD 3.88 HKD 9.47
Diluted (in dollar) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit (Loss) after ETD Items : 6,538 11,928
2nd Quarter Dividends per Share : NIL NIL
(specify if with other options) : N/A N/A
B/C Dates for 2nd 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
JF Household Furnishing Limited
Signature :
Name : David Cheung
Title : Financial Controller
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 principal accounting policies
The unaudited interim results have been prepared in accordance with
accounting principles generally accepted in Hong Kong and comply with
accounting standards issued by the HKICPA. They have been prepared
under the historical cost convention and in accordance with the
applicable disclosure requirements of Chapter 18 of the GEM Listing
Rules and the disclosure requirements of the Hong Kong Companies
Ordinance (Cap 32 of the Laws of Hong Kong).
The accounting policies adopted in preparing the unaudited
consolidated results for the three months and six months ended 30 June
2006 are consistent with those followed in the preparation of the
Group's annual financial statements for the year ended 31 December
2005
2. Turnover
The Group is principally engaged in manufacturing and sales of
furnishings and home products and accessories primarily used in the
kitchens and bathroom. Turnover represents invoiced value of goods
sold, net of value-added tax, and after allowance for goods returned
and trade discounts.
3. Other Revenue
Other revenue include an one-off grant of HK$1.93 million (RMB 2.0
million) by the People's Government of Yuyao for encouraging product
development of the Group.
4. Taxation
No provision for profits tax in the Cayman Islands or the British
Virgin Islands has been made as the Group had no income assessable for
the periods.
Pursuant to the relevant laws and regulations in the People's Republic
of China ("PRC"), A.C.R. Equipment Supplies (Ningbo) Co., Ltd. ("JF
Ningbo"), a subsidiary of the Company operating in Zhejiang Province,
the PRC, is subject to enterprise income tax rate at 26.4% on its
taxable profit in accordance with Income Tax Law of People's Republic
of China for Enterprises with Foreign Investment and Foreign
Enterprises.
JF Ningbo is entitled to a 50% tax refund in 2007 for the tax paid in
2006, if it, as a foreign-invested enterprise, exports 70% or more of
the total sales during a full financial year.
Under this provision, the Group has to pay a 26.4% tax for a full year
and the refund of half of that tax (13.2%) from the government will be
made normally in the second quarter of the following year. No
provision for this refund has been included in the tax calculation for
this reporting.
Pursuant to the relevant laws and regulations in the PRC, Ningbo JF
Metal Products Co. Ltd. ("JF Metal"), a subsidiary of the Company
operating in Zhejiang Province, the PRC, is subject to enterprise
income tax rate at 26.4% on its taxable profit in accordance with
Income Tax Law of People's Republic of China for Enterprises with
Foreign Investment and Foreign Enterprises. JF Metal is entitled to a
two-year exemption from enterprise income tax starting from its first
profit-making year followed by a 50% reduction for the subsequent
three years. JF Metal commenced its business in 2005 and is still
exempted from enterprise income tax for the second tax year in 2006.
5. Dividends
The Directors do not recommend the payment of dividend for the six
months ended 30 June 2006. (2005: Nil)
6. Earnings per share
The calculation of basic earnings per share is based on the
consolidated profit attributable to shareholders during the six month
period ending 30 June 2006 of HK$6.54 million (2005: HK$11.93 million)
and weighted average of 168,311,354 ordinary shares of the Company
during the six months ended 30 June 2006 (2005: 126,000,000 ordinary
shares of the Company in issue on 9 September 2005, assuming the
shares were outstanding for the entire periods).
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