EGANA JEWELLERY<00926> - Results Announcement (Summary)
Egana Jewellery & Pearls Limited announced on 19/9/2002:
(stock codes: 926 & 2968)
Year end date: 31/5/2002
Currency: HKD
Auditors' Report: Unqualified
Review of Interim Report by: N/A
(Audited) (Audited,Restated)
17-month 12-month
Period Period
from 1/1/2001 from 1/1/2000
to 31/5/2002 to 31/12/2000
('000) ('000)
Turnover : 855,738 670,648
Profit/(Loss) from Operations : 68,193 64,305
Finance cost : (22,972) (17,065)
Share of Profit/(Loss) of Associates : - -
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : 42,286 42,630
% Change over Last Period : N/A
EPS/(LPS)-Basic : 13.63 cents 13.75 cents
-Diluted : N/A 13.70 cents
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : 42,286 42,630
Final Dividend per Share : Nil Nil
(Specify if with other options) : N/A N/A
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. The calculation of the basic earnings per share for the 17-month period
ended 31st May, 2002 is based on the profit attributable to shareholders
of approximately HK$42,286,000 (2000: HK$42,630,000) and the weighted
average number of ordinary shares of approximately 310,204,000 (2000:
310,144,100) in issue throughout the period after taken into account the
effect of consolidation of 10 shares into 1 share.
There is no diluted earnings per share for the 17-month period ended 31st
May, 2002 since the Company has no diluted potential ordinary share. The
diluted earnings per share for the period ended 31st December, 2000 is
based on the profit attributable to shareholders of approximately
HK$42,630,000 and the weighted average number of ordinary shares of
approximately 311,087,000 that would be in issue having been adjusted to
reflect the effect of all dilutive potential ordinary shares during the
period and the consolidation of 10 shares into 1 share.
2. Basis of preparation and accounting policies
In the current period ended 31st May, 2002, the Group (being the
Company and its subsidiaries) has changed certain of its accounting
policies following its adoption of the following Statement of Standard
Accounting Practices ("SSAP") issued by the Hong Kong Society of
Accountants which are effective for accounting periods commencing on or
after 1st January, 2001:
SSAP 9 (revised) : Events after the balance sheet date
SSAP 14 (revised) : Leases (effective for periods commencing
on or after 1st July, 2000)
SSAP 26 : Segment reporting
SSAP 28 : Provisions, contingent liabilities and contingent assets
SSAP 29 : Intangible assets
SSAP 30 : Business combinations
SSAP 31 : Impairment of assets
SSAP 32 : Consolidated financial statements and accounting for
investments in subsidiaries
The changes to the Group's accounting policies and the effect of
adopting these new policies are set out below:
In prior years, advertising and promotional expenditure were
capitalised and amortised using the straight-line method over a period of
not more than three years. The adoption of SSAP 29 has led to a
re-assessment of this accounting policy. In particular, advertising
expenses are not considered to give rise to an identifiable resource from
which economic benefits are expected to flow up to the Group.
Accordingly, such expenditure is now recognised as an expense in the
period in which it is incurred. The change in accounting policy has been
applied retrospectively resulting in a decrease in the retained profits at
1st January, 2000 of HK$14,951,478 and the Group's net profit for the 12
months ended 31st December, 2000 of HK$1,047,796.
Goodwill arising on consolidation represents the excess of cost of
acquisition of subsidiary and associate over the Group's share of the fair
value ascribed to the separable net assets at the date of acquisition. In
previous years, goodwill was taken to the reserves in the year in which it
arose. With the introduction of SSAP 30, the Group has adopted the
transitional provisions prescribed therein. New goodwill incurred after
1st January, 2001 is capitalised in the balance sheet and is amortised to
the income statement on a straight-line basis over its estimated useful
economic life. All goodwill arising from earlier acquisitions before 1st
January, 2001 will continue to be held in reserves and no reinstatement
has been made.
In accordance with the requirements of SSAP 31 and the transitional
provisions of SSAP 30, an adjustment has been made concerning the
impairment of goodwill arising prior to the adoption of SSAP 30 which was
eliminated against available reserves. The adjustment, which represents a
change in accounting policy, has been applied retrospectively in
accordance with SSAP 2 "Net profit or loss for the period, fundamental
errors and changes in accounting policies". Accordingly, goodwill in the
amount of HK$16,558,952 which was impaired in prior periods has been
recognised directly in the prior periods' retained profits as brought
forward at 1st January, 2000.
3. The Board of Directors (including non-executive directors) have
unanimously resolved on 29th April, 2002 to change its year end date from
31st December to 31st May and to have it effective from 31st May 2002.
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