CHINA SP FIBRE<00285> - Results Announcement (Summary)
China Specialised Fibre Holdings Limited announced on 29/9/2002:
(stock code: 285)
Year end date: 31/12/2002
Currency: RMB
Auditors' Report: N/A
Review of Interim Report by: Audit Committee
(Unaudited)
(Unaudited) Last
Current Corresponding
Period Period
from 1/1/2002 from 1/1/2001
to 30/6/2002 to 30/6/2001
('000) ('000)
Turnover : 356,735 305,933
Profit from Operations : 88,606 94,263
Finance cost : (12,121) (10,361)
Share of Profit/(Loss) of Associates : - -
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit after Tax & MI : 66,629 72,539
% Change over Last Period : -8.1%
EPS/(LPS)-Basic : RMB0.036 RMB0.039
-Diluted : N/A N/A
Extraordinary (ETD) Gain/(Loss) : - -
Profit after ETD Items : 66,629 72,539
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 preparation
As at 30 June 2002, the Group had net current liabilities of approximately
RMB306,595,000. The Directors are of the opinion that the Group's
financial position and tight cash flows are mainly attributable to the
Group's investing activities.
On 10 January 2002, Mr. Chen Shunli, one of the guarantors of a loan, was
involved in a personal civil litigation. This led to a breach of certain
terms of the deed of guarantee which in turn led to a breach of certain
terms of the loan agreement. As a result, the loan has become technically
repayable on demand. The personal civil litigation of Mr Chen was
dismissed by a consent order sealed by the Hong Kong court on 16 July
2002, and consequently, a portion of the loan has been reclassified to
long term as at 30 June 2002 according to the original terms of the loan
agreement.
Included in the current portion of long-term borrowings are two term loans
in an aggregate amount of approximately RMB22,787,000. Their loan
agreements contain certain financial covenants. The publication of these
interim financial statements discloses the fact that the Group has not
complied with the covenants which give rise to defaults. As a
consequence, the loans have become technically repayable on demand and
have been re-classified as current liabilities. The Directors are of the
opinion that they are able to negotiate successfully with the financial
institutions and to repay the loans in accordance with the original terms
of the loan agreements. As at the date of approval of the interim
financial statements, the financial institutions have not demanded
repayment of loans.
In light of the measures taken and the expected outcome, the Directors are
satisfied that it is appropriate to prepare the interim financial
statements on a going concern basis.
If the going concern basis was not to be appropriate, adjustments would
have to be made to restate the values of the assets to their recoverable
amounts, to provide for any further liabilities which might arise and to
reclassify non-current assets and long term liabilities as current assets
and current liabilities, respectively.
(2) Earnings per share
The calculation of basic earnings per share for the six months ended 30
June 2002 is based on the profit attributable to shareholders of
approximately RMB66,629,000 (30 June 2001: RMB72,539,000) and on shares of
1,860,000,000 (30 June 2001: 1,860,000,000) in issue during the period.
Diluted earnings per share for the six months ended 30 June 2002 and 2001
were not presented because there were no dilutive potential ordinary
shares in existence during the relevant periods.
For more details, please refer to the press announcement today.
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