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 : +13.72%
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.
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