KWONG SANG HONG<0189> - Results Announcement
The Kwong Sang Hong International Limited announced on 25/8/1999:
(stock code: 189)
Year end date: 30/11/1999
Currency: HK$
Last
Current Corresponding
Period Period
from 1/12/1998 from 1/12/1997
to 31/5/1999 to 31/5/1998
('000) ('000)
Turnover : 166,305 116,897
Profit-Continuing Operations
- Operating Profit/(Loss)
before exceptional items : 6,243 (393,638)
- Exceptional Items : N/A N/A
- Discontinued Operations : - -
Total Operating Profit/(Loss) : (6,243) (393,638)
Share of Profit/(Loss) of
Associated Companies : (1,479) 1,789
Profit/(Loss) after Tax & MI : 469 (402,606)
% Change over Last Period : N/A
EPS/(LPS)-Basic : 0.08 cent (65.6 cents)
-Diluted : N/A (65.6 cents)
Extraordinary (ETD) Gain/(Loss) : NIL NIL
Profit/(Loss) after ETD Items : 469 (402,606)
Interim Dividend per Share : NIL NIL
(Specify if with other options) : - -
B/C Dates for Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : N/A
B/C Dates for Other Distribution : N/A
Remarks:
(1) Basis of presentation
During the six months ended 31st May 1999, the Group has adopted the
following new Statement of Standard Accounting Practice (SSAPs) issued by
the Hong Kong Society of Accountants:
SSAP 1 (Revised) Presentation of financial statements
SSAP 2 (Revised) Net profit or loss for the period, fundamental
errors and changes in accounting policies
SSAP 24 Accounting for investments in securities
(a) SSAP 1 (Revised)
The adoption of SSAP 1 (revised) has resulted in changes in the
presentation of financial statement. These include a new statement of
recognized gains and losses and additional disclosure requirements for the
income statement. The Group's expenses are analyzed according to their
functions within the enterprise and additional disclosure is provided for
depreciation, amortization expenses and staff cost. Separate disclosure
of "other revenue" and "finance cost" are also provided on the face of the
income statement. Comparative figures have been reclassified to conform
with the current period's presentation.
(b) SSAP 2 (Revised)
SSAP 2 (revised) specifies the accounting treatment for changes in
accounting estimates, changes in accounting policies and the correction of
fundamental errors. To comply with the revised standard, the description
"exceptional" previsouly adopted for exceptional items is dispensed but
such items are separately disclosed in the income statement. Comparative
figures have been reclassified to conform with the revised accounting
policies.
(c) SSAP 24
The accounting policy for other investments has been changed in accordance
with the introduction of SSAP 24. Other investment, which are defined as
those held for long-term purposes but are not classified as
held-to-maturity or investment securities, were previously included in the
balance sheet at cost less provision for any permanent diminution in
value. Following the implementation of SSAP 24, listed shares included in
other investments are carried at fair value, with valuation movements
included in net profit or loss for the period by adopting the benchmark
treatment. The financial effect of the change in accounting policy is as
follows:-
(i) Income statements for the six months ended 31st May 1999 and six
months ended 31st May 1998
The change in accounting policy was applied retrospectively in the
previous financial years. The effect of the change is to increase profit
for the six months ended 31st May 1999 by HK$1.1 million and the increase
of loss for the six months ended 31st May 1998 by HK$13.4 million
respectively. Comparative figures have been restated to conform with the
new accounting policies.
(ii) Income statements for the year ended 30th November, 1998
The effect of the change in accounting policy has increased the loss
attributable to shareholders for the year ended 30th November, 1998 by
HK$16 million from HK$716.89 million to HK$732.89 million.
(iii) Consolidated balance sheet as at 30th November, 1998
The effect of the change in accounting policy has:-
(a) reduced the carrying amount of other investments by HK$106.7 million
from HK$219.9 million to HK$113.2 million; and
(b) reduced the retained profits as at 1st December 1997 and 30th November
1998 by HK$90.7 million and HK$106.7 million respectively.
(2) Turnover
Turnover for the current period represents the aggregate of proceeds from
the sales of properties, property rental income, comestics sales revenue
and dividend income. Interest income previously included in turnover for
the six months ended 31st May 1998 has been excluded from turnover to
conform with the presentation of current period.
(3) Earnings /(loss) per share
The calculation of the basic earnings per share (period ended 31st May,
1998: loss per share) is based on the profits for the period of
HK$469,000 (period ended 31st May, 1998: loss of HK$402,606,000) and on
the number of 613,496,416 (period ended 31st May, 1998: 613,496,416)
ordinary shares in issue during the year.
After the resignation of all those Directors who were entitled to share
options schemes, which were adopted by the Company on 6th July, 1990 and
5th June, 1995, during the year ended 30th November, 1998, all outstanding
exercisable share options were cancelled in accordance with the rules of
the share options scheme. There were no more outstanding share options
and no diluted earnings per share is calculated for the period ended 31st
May, 1999.
The calculation of diluted loss per share for the period ended 31st May,
1998 is based on the loss for the period ended of HK$402,606,000 and on
the adjusted weighted average number of 613,504,971 ordinary shares issued
and issuable after adjusting for the weighted average number of 8,555
potential dilutive ordinary shares assumed to be issued on the exercise of
outstanding dilutive share options during the period.
|
