KWONG SANG HONG<00189> - Results Announcement (Summary)
The Kwong Sang Hong International Limited announced on 4/3/2002:
(stock code: 189)
Year end date: 30/11/2001
Currency: HK$ (Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/12/2000 from 1/12/1999
to 30/11/2001 to 30/11/2000
('000) ('000)
Turnover : 141,269 97,528
Profit/(Loss) from Operations : (61,786) (411,739)
Finance cost : (2,659) (1,416)
Share of Profit/(Loss) of Associates : (12,444) 2,327
Share of Profit/(Loss) of
Jointly Controlled Entities : Nil Nil
Profit/(Loss) after Tax & MI : (70,972) (434,815)
% Change over Last Period : N/A
EPS/(LPS)-Basic : (7.4 cents) (55 cents)
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : Nil Nil
Profit/(Loss) after ETD Items : (70,972) (434,815)
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 and comparative figures
The Group has adopted the following new or revised Statements of Standard
Accounting Practice ("SSAPs") in preparation of the financial statements
for the current year. Accordingly certain comparative figures for the
prior year have been restated in order to achieve a consistent
presentation.
The Group has adopted the following SSAPs in advance of their effective
dates:
SSAP 9 (Revised) Events after the Balance Sheet Date
SSAP 10 (Revised) Accounting for Investment in Associates
SSAP 17 (Revised) Property, Plant and Equipment
SSAP 18 (Revised) Revenue
SSAP 26 Segment Reporting
SSAP 28 Provisions, Contingent Liabilities and Contingent
Assets
SSAP 30 Business Combinations
SSAP 31 Impairment of Assets
SSAP 32 Consolidated Financial Statements and Accounting
for Investments in Subsidiaries
In addition, the Group has adopted SSAP 14 (Revised) "Leases" which is
effective for accounting periods beginning on or after 1st July, 2000.
2. Turnover
Turnover represents the aggregate of amounts received and receivable from
sales of properties, property rental income and cosmetics goods sold to
outside customers less returns.
3. Segmental information
Business segments
For management purposes, the Group is currently organised into three
operating divisions - property development, property leasing and
cosmetics. These divisions are the basis on which the Group reports its
primary segment information.
Principal activities are as follows:
Property development - Property development and sales of
properties
Property leasing - Property rental
Cosmetics - Manufacturing and trading in cosmetics
products
Segment information about these businesses is presented below.
For the year ended 30th November, 2001
Property
development Property leasing Cosmetics Other operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Revenue
Revenue from external customers
109,915 26,547 4,807 - 141,269
======= ======= ====== ======= ========
Result
Segment result
(58,531) 14,070 1,424 - (43,037)
======== ======= ====== ========
Unallocated corporate expenses (18,749)
----------
Loss from operations (61,786)
Finance costs (2,659)
Investment income 19,023
Other losses
(39,457) (1,242) - 7 (40,692)
Share of results of associates
(14,180) - (67) 1,803 (12,444)
---------
Loss before taxation (98,558)
Taxation 26,441
---------
Loss after taxation (72,117)
=========
For the year ended 30th November, 2000
Property
development Property leasing Cosmetics Other operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Revenue
Revenue from external customers
70,661 21,805 5,062 - 97,528
======= ======= ====== ====== =======
Result
Segment result
(419,374) 18,362 (639) - (401,651)
========= ====== ===== =======
Unallocated corporate expenses (10,088)
---------
Loss from operations (411,739)
Finance costs (1,416)
Investment income 4,901
Other losses
(16,261) (2,296) - (3,373) (21,930)
Share of results of associates
59 - (91) 2,359 2,327
--------
Loss before taxation (427,857)
Taxation (221)
---------
Loss after taxation (428,078)
Geographical segments
The following table provides an analysis of the Group's revenue and
contribution to loss from operations by geographical market, irrespective
of the origin of the goods/services:
Revenue by Contribution to
geographical market loss from operations
2001 2000 2001 2000
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong 124,388 80,931 (57,616) (416,063)
Elsewhere in the People's Republic of China ("PRC")
16,881 16,597 14,579 14,412
---------------------------- ----------------------
141,269 97,528 (43,037) (401,651)
========================
Unallocated corporate expenses (18,749) (10,088)
----------------------
Loss from operations (61,786) (411,739)
======================
4. Consolidated statement of recognised gains and losses
Year ended 30th November,
2001 2000
HK$'000 HK$'000
Exchange differences arising on translation of overseas operations
1,110 12
Share of associates' exchange differences arising on translation of
overseas operations 173 368
----------- -----------
Net gains not recognised in the consolidated income statement
1,283 380
Loss attributable to shareholders (70,972) (434,815)
----------- -----------
Total recognised gains and losses (69,689) (434,435)
=========== ===========
Prior period adjustment arising from the effects of changes in accounting
policy (Remark 1)
- increase in accumulated profits as at 1st December, 1999 22,351
- decrease in capital reserve as at 1st December, 1999 (22,351)
----------
-
==========
5. Staff expenses and depreciation
Year ended 30th November,
2001 2000
HK$'000 HK$'000
Staff expenses
- Selling & marketing expenses 216 184
- Administrative expenses 6,464 6,394
---------- ---------
6,680 6,578
========== =========
Depreciation
- Selling & marketing expenses 7 115
- Administrative expenses 39 38
--------- --------
46 153
========= ========
6. Other operating expenses
Year ended 30th November,
2001 2000
HK$'000 HK$'000
Deficit on revaluation of investment properties
(3,571) (1,911)
(Loss) gain on disposal of investment properties
(1,611) 2,732
Loss on disposal of property held for development
(46,383) -
Impairment loss recognised in respect of properties held for sale
(2,016) (10,115)
Legal expenses in respect of lawsuits
(10,048) (2,749)
-------------- ------------
(63,629) (12,043)
========== ===========
7. Investment income
Year ended 30th November,
2001 2000
HK$'000 HK$'000
Dividend income - unlisted investment
3,506 1,962
Gain on disposal of other investments
9,435 -
Interest income 6,476 8,314
Unrealised holding loss on other investments
(394) (5,375)
------------ ------------
19,023 4,901
========= =========
8. Other losses
Year ended 30th November,
2001 2000
HK$'000 HK$'000
Impairment loss on interest in associates
- Amounts due from associates (21,593) (12,615)
- Interest previously capitalised (19,099) -
Loss on disposal of an associate - (9,315)
----------- -----------
(40,692) (21,930)
=========== ===========
9. Taxation
Year ended 30th November,
2001 2000
HK$'000 HK$'000
The credit (charge) comprises:
Company and subsidiaries
- Hong Kong
- current year (1,070) (3,059)
- prior years 27,767 2,674
- Other than Hong Kong - 421
---------- ----------
26,697 36
========= ==========
Associates
- Hong Kong (244) (232)
- Other than Hong Kong (12) (25)
-------- ---------
(256) (257)
-------- ---------
26,441 (221)
======== ========
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 associates arising outside Hong Kong has been provided
for in accordance with the relevant local jurisdictions. The taxation
credit mainly 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 deficit arising on
the revaluation of investment properties and investment securities 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.
10. Loss per share
The calculation of the basic loss per share is based on the loss
attributable to shareholders of HK$70,972,000 (2000: HK$434,815,000) and
on 959,899,416 (2000: weighted average number of 790,493,050) ordinary
shares in issue during the year.
For more details, please refer to the press announcement today.
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