KWONG SANG HONG<0189> - Results Announcement (Summary)
The Kwong Sang Hong International Limited announced on 8/8/2001:
(stock code: 189)
Please refer to the press announcement for the details of the
auditors' and audit committee's review report on the interim financial
statement, issued by the Company on 9/8/2001.
Year end date: 30/11/2001
Currency: HKD (Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/12/2000 from 1/12/1999
to 31/5/2001 to 31/5/2000
('000) ('000)
Turnover : 66,848 48,309
Profit/(Loss) from Operations : (46,490) 10,779
Finance cost : (679) (511)
Share of Profit/(Loss) of Associates : 864 1,598
Share of Profit/(Loss) of
Jointly Controlled Entities : Nil Nil
Profit/(Loss) after Tax & MI : (11,151) (11,197)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (1.16 cents) (1.68 cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : Nil Nil
Profit/(Loss) after ETD Items : (11,151) (11,197)
Interim Dividend per Share : Nil Nil
(Specify if with other options) : N/A N/A
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
The condensed financial statements have been prepared under the historical
cost convention, as modified for the revaluation of investment properties
and other investments.
The condensed financial statements have been prepared in accordance with
Statement of Standard Accounting Practice ("SSAP") 25 "Interim Reporting"
issued by the Hong Kong Society of Accountants and with the applicable
disclosure requirements of Appendix 16 to the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited ("Listing
Rules"), except that comparative figures are not presented for the cash
flow statement, being the first cash flow statement to be included in the
interim financial report relating to accounting periods ended on or after
1st July, 2000. Such departures from SSAP 25 are permitted under the
Listing Rules.
The accounting policies adopted are consistent with those followed in the
Group's annual financial statements for the year ended 30th November, 2000
except that in the current period, the Group has adopted for the first
time, a number of new and revised SSAPs issued by the Hong Kong Society of
Accountants.
2. Turnover
Turnover represents the aggregate of amounts received and receivable from
the sales of properties, property rental income and cosmetics goods sold
to outside customers less returns.
3. Segment Information
Business Segments
Property
development
and trading Property leasing Cosmetics trading Consolidated
Six months Six months Six months Six months
ended 31st May, ended 31st May, ended 31st May, ended 31st May,
2001 2000 2001 2000 2001 2000 2001 2000
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Segment revenue
53,843 34,440 11,005 10,799 2,000 3,070 66,848 48,309
=====================================================================
Segment result
(43,404) 3,600 8,437 8,610 742 1,211 (34,225) 13,421
=======================================================
Unallocated operating expenses
(12,265) (2,642)
----------------
(Loss) profit from operations (46,490) 10,779
================
By geographical markets
Contributions to (loss)
Turnover profit from operations
Six months ended Six months ended
31st May, 31st May,
2001 2000 2001 2000
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong 58,140 40,235 (53,647) 1,523
Elsewhere in the
People's Republic
of China ("PRC") 8,708 8,074 7,157 9,256
--------------------------------------------------
66,848 48,309 (46,490) 10,779
==================================================
4. Staff expenses and depreciation
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
Staff expenses
- Selling and marketing expenses 119 122
- Administrative expenses 3,172 3,438
----------------------
3,291 3,560
======================
Depreciation
- Selling and marketing expenses 1 88
- Administrative expenses 17 22
-----------------------
18 110
========================
5. Taxation
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
The (credit) charge comprises:
Company and subsidiaries
Hong Kong
- current period 846 1,540
- overprovision in prior years (25,283) -
---------------------
(24,437) 1,540
----------------------
Associates
Hong Kong 121 109
Other than Hong Kong 10 9
---------------------
131 118
--------------------
(24,306) 1,658
======================
Hong Kong Profits Tax is calculated at 16% of the estimated assessable
profits for the period. Taxation on profits of subsidiaries and associates
arising outside Hong Kong has been provided for in accordance with the
relevant local jurisdictions. The taxation credit represents a reversal
of provision made upon refund of tax paid in previous years at the final
resolution of an outstanding tax dispute.
No provision for deferred taxation has been recognised in the financial
statements as the amount involved is not significant.
Deferred tax has not been recognised in respect of the surplus or deficit
arising on the revaluation of investment properties and other investments
as profits or losses arising on the disposal of these assets would not be
assessable or allowable for tax purpose. Accordingly, the revaluation
does not constitute a timing difference for tax purposes.
6. Loss per share
The calculation of the loss per share is based on the loss attributable to
shareholders for the period of HK$11,151,000 (period ended 31st May, 2000:
loss of HK$11,197,000) and on the 959,899,416 (period ended 31st May,
2000: weighted average number of 665,407,531) ordinary shares in issue
throughout the period.
7. Condensed consolidated statement of recognised gains and losses
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
Exchange gain arising on translation of
financial statements of subsidiaries and
associates other than Hong Kong not recognised
in the consolidated income statement 726 645
Loss attributable to shareholders (11,151) (11,197)
----------------------
Total recognised gains and losses (10,425) (10,552)
======================
Effect of change in accounting policy on adoption of SSAP 30
- increase in accumulated profits as at
1st December, 1999 22,351
- decrease in capital reserve as at
1st December, 1999 (22,351)
--------
-
========
8. Other operating (expenses) income
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
Gain on disposal of investment properties 56 2,625
Legal expenses in respect of lawsuits (7,883) (376)
---------------------
(7,827) 2,249
=====================
During the period, the legal expenses were incurred for legal disputes of
property development projects in Hong Kong and the People's Republic of
China ("PRC")
9. Investment income (expenses)
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
Interest income 7,610 3,722
Unrealised holding gain (loss) on other
investments 5,073 (4,806)
----------------------
12,683 (1,084)
=======================
10. Other Losses
Six months ended
31st May,
2001 2000
HK$'000 HK$'000
Provision for amounts due from associates (1,290) (8,062)
Loss on disposal of an associate - (9,315)
-----------------------
(1,290) (17,377)
========================
11. Comparative figures
Certain comparative figures have been reclassified to conform with the
current period's presentation.
For more details, please refer to the press announcement today.
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