KWONG SANG HONG<0189> - Results Announcement
The Kwong Sang Hong International Limited announced on 23/3/2000:
(stock code: 189)
Year end date: 30/11/1999
Currency: HK$ (Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/12/1998 from 1/12/1997
to 30/11/1999 to 30/11/1998
('000) ('000)
Turnover
- Continuing : 248,527 172,323
- Discontinued : NIL NIL
Operating Profit/(Loss)
- Continuing : 44,397 27,260
- Discontinued : NIL NIL
Total Operating Profit/(Loss) : 44,397 27,260
Share of Profit/(Loss) of
Associated Companies : (28,400) (54,299)
Share of Profit/(Loss) of
Jointly Controlled Entities : NIL NIL
Profit/(Loss) after Tax & MI : (4,424) (735,462)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (0.7 cent) (119.9 cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : NIL NIL
Profit/(Loss) after ETD Items : (4,424) (735,462)
Final Dividend per Share : NIL NIL
(Specify if with other options) : - -
B/C Dates for Final 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 year ended 30th November 1999, the Group adopted, for the first
time, the following Statements of Standard Accounting Practice ("SSAP"(s))
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 10 (Revised) Accounting for investments in associates
SSAP 24 Accounting for investments in securities
SSAPs 1 and 2 are concerned with the presentation and disclosure of
financial information. The presentation in the current year's financial
statements has been modified in order to conform with the requirements of
those standards. Comparative amounts have been restated in order to
achieve a consistent presentation.
In particular :
- additional analyses of income and expenditure have been presented;
- items of income and expenses that were separately identified on the face
of the income statement as 'exceptional items' in the prior year have been
reclassified within an appropriate income or expenses classification.
- amounts owing to subsidiaries, associates, investee companies and
amounts owing by minority shareholders which had previously been presented
together with the Company's investments in such enterprises have been
reclassified as non-current assets and liabilities according to the nature
of the transactions giving rise to the balances; and
- certain current assets and liabilities have been reclassified as
non-current assets and liabilities in accordance with the definitions of
SSAP 1.
In addition, the description of various components in the financial
statements and the terminology used has been updated to reflect the
terminology of the new standards.
None of the amendments outlined above has affected the results for the
current or prior years.
SSAP 10 (Revised) has not resulted in any significant changes to the
accounting treatment adopted for associates and accordingly no prior year
adjustment has been required. Disclosures presented have been modified to
meet the requirements of the new standard.
SSAP 24 has introduced a new framework for the classification of
investments in securities and the adoption of the standard has had a
significant effect on the treatment adopted by the Group for its
investments in securities. In adopting SSAP 24, the Group has selected
the benchmark treatment for securities other than held-to-maturity
securities.
Under SSAP 24, investments in securities are now classified as
held-to-maturity (carried at amortised cost less provision for
irrecoverable amounts), investment securities (carried at cost less
impairment) and other investments (carried at fair value, with valuation
movements dealt with in the income statement). In prior years, the
Group's investments were classified as other investments which carried at
cost less provision for permanent diminution in value. The accounting
treatment specified by SSAP 24 has been applied retrospectively -
resulting in an increase in the accumulated losses at 1st December, 1997
of HK$90,730,000, an increase in loss in the prior year of HK$18,569,000
and increase in profit in the current year of HK$22,239,000. Comparative
information has been restated to reflect this change in accounting policy.
(2) Turnover
Turnover represents the aggregate of amounts received and receivable from
the sales of trading properties, property rental income, cosmetics goods
sold to outside customers less returns, and dividend income. Interest
income previously included in turnover for the year ended 30th November,
1998 has been excluded from turnover to conform with the presentation of
current year.
(3) Staff expenses and depreciation expenses
Year ended 30th November
1999 1998
HK$'000 HK$'000
Staff expenses
- Selling & marketing expenses 150 228
- Administrative expenses 8,007 13,942
-------- --------
8,157 14,170
======== ========
Depreciation expenses
- Selling & marketing expenses 396 794
- Administrative expenses 54 70
-------- --------
450 864
======== ========
(4) Taxation
Year ended 30th November
1999 1998
HK$'000 HK$'000
The charge comprise :
Company and subsidiaries
- Hong Kong
current year 12,938 7,327
Tax rebates (1,012) -
- Other than Hong Kong 136 420
------- -------
12,062 7,747
Associated companies
- Hong Kong profits tax 279 (41)
- Other than Hong Kong 1,233 177
------- -------
1,512 136
------- -------
13,574 7,883
======= =======
Hong Kong Profits Tax has been provided for at the rate of 16% on the
estimated assessable profits for the year. Taxation on profits of
subsidiaries and associated companies other than Hong Kong has been
provided for in accordance with the relevant local jurisdictions.
Hong Kong Profits Tax rebates represent 10% rebate in respect of the
1997/98 final assessments of Hong Kong Profits Tax.
No provision for deferred taxation has been recongnised in the financial
statements as the amount involved is not significant.
(5) Loss per share
The calculation of the basic loss per share is based on the loss for the
year of HK$4,424,000 (1998: loss of HK$735,462,000) and on 613,496,416
(1998: 613,496,416) ordinary shares in issue during the year.
After the resignation of all those Directors who were entitled to the
share options schemes, which were adopted by the Company on 6th July, 1990
and 5th June, 1995, during the year ended 30th November, 1998, all
outstanding exercisable share options were cancelled in accordance with
the rules of the share options schemes. There were no more outstanding
share options and no diluted loss per share is calculated for the year
ended 30th November, 1999.
Because the exercise prices of the outstanding share options of the
Company were greater than the average market price of the Company during
the year of 1998, no diluted loss per share is calculated for the year
ended 30th November, 1998.
The adjustment to comparative basic loss per share arising from the
changes in accounting policy shown in note 1 above is as follows:
HK cents
Reconciliation of 1998 basic loss per share :
Reported figure before adjustments 116.8
Adjustments arising from the adoption of SSAP 24 3.1
------
Restated 119.9
======
(6) Consolidated statement of recognised gains and losses
Year ended 30th November
1999 1998
HK$'000 HK$'000
Deficit on revaluation of investment properties - (176,224)
Exchange differences arising on translation of
overseas Operations 473 (440)
Share of associates exchange difference
arising On translation of overseas operations 300 5,103
------- --------
Net gains (losses) not recognised in the
income statement 773 (171,561)
Net loss for the year (4,424) (735,462)
------- ---------
Total recognised gains and losses (3,651) (907,023)
======= =========
Effect of changes in accounting policy on
adoption of SSAP 24 (see note 1)
- decrease in accumulated profits at
1st December, 1998 (109,299)
=========
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