TIANYE WATER<08280> - Results Announcement (Q3, 2006, Summary) (Revised) Xinjiang Tianye Water Saving Irrigation System Company Limited announced on 20/10/2006: (stock code: 08280 ) Year end date :31/12/2006 Currency :RMB Auditors' report :N/A 3rd 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 30/09/2006 to 30/09/2005 $'000 $'000 Turnover : 323,787 273,369 Profit/(Loss) from Operations : 37,213 32,623 Finance cost : (3,133) (2,696) 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 : 29,185 25,663 % Change Over the Last Period : +6.84% EPS / (LPS) Basic (in dollar) : RMB 0.062 RMB 0.081 Diluted (in dollar) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit (Loss) after ETD Items : 29,185 25,663 3rd Quarter Dividends per Share : NIL NIL (specify if with other options) : N/A N/A B/C Dates for 3rd 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 : Anthony Wong 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. Its ultimate holding company is Xinjiang Tianye (Group) Limited, incorporated in Xinjiang, the PRC. The Group are mainly engaged in the development, manufacturing, installation and sales of irrigation systems and equipment. 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 subsidiaries are set off against the interests of the Group, only to the extent that the minority has a binding obligation and is able to make an additional investment to cover the losses. The books and records of the Group are presented in Renminbi (RMB), the currency in which the majority of the Group's transactions are denominated. 2. ACCOUNTING POLICIES The accounting policies adopted in preparing the unaudited consolidated financial results were in consistent with those applied for the annual financial statements of the Group for the year ended 31st December 2005. 3. TURNOVER Turnover represents the consideration received and receivable for goods sold to external customers, net of value-added tax, returns and discounts, and the consideration received and receivable for the services provided. 4. INCOME TAX EXPENSES The amounts represent provision for the PRC Enterprise Income Tax ("EIT") on the estimated assessable profit of the Group for the nine months ended 30th September 2006. According to the PRC law, the Company and its subsidiaries are subject to the 33% EIT. Pursuant to "Notice of Problem on Certain Incentives Policy on the Development of Western China" Cai Shui Zi [2001] No. 202 issued by the Ministry of Finance, the State Administration of Taxation and the General Administration of the Customs, operating entities primarily engaged in the businesses prescribed in "Catalogue of Industries, Products and Techniques Heavily Encouraged by the State (amended in 2000)" ("Prescribed Businesses") in western PRC and such business contributes to over 70% of its operating income are entitled to enjoy specific preferential tax treatment. Assuming that the entities comprising the Group continue to comply with such requirements in the relevant period, such entities shall be entitled to certain preferential tax treatment. During the seven years ended 31st December 2010, the Company was granted the preferential EIT tax treatment at a reduced tax rate of 15%. During the period from 1st January 2002 to 31st December 2010, our subsidiary, Gansu Zhangye Tianye Water Saving Equipment Company Limited, was granted the preferential EIT tax treatment at a reduced tax rate of 15%. During the period from 1st January 2004 to 31st December 2007, our subsidiary, Hami Tianye Hongxing Water Saving Irrigation Company Limited was granted the preferential EIT tax treatment at a reduced tax rate of 15%. Other member companies of the Group are subject to the 33% EIT. 5. BASIC EARNING PER SHARE For the three months ended 30th September 2006, the basic earnings per share is calculated by dividing the unaudited net profit for that quarter attributed to the equity holders of the Company of approximately RMB3.057 million (2005: approximately RMB2.209 million) by 519,521,560 shares (2005: 317,121,560 shares) in issue. For the nine months ended 30th September 2006, the basic earnings per share is calculated by dividing the unaudited net profit attributable to the equity holders of the Company for the relevant period of approximately RMB29.185 million (2005 : approximately RMB25.663 million) by the weighted average number of 474,199,948 shares (2005: 317,121,560 shares) in issue. |