KWONG SANG HONG<00189> - Results Announcement (Summary)
The Kwong Sang Hong International Limited announced on 18/8/2003:
(stock code: 00189 )
Year end date: 30/11/2003
Currency: HKD
Auditors' Report: N/A
Review of Interim Report by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 1/12/2002 from 1/12/2001
to 31/5/2003 to 31/5/2002
Note ('000 ) ('000 )
Turnover : 122,294 24,940
Profit/(Loss) from Operations : (9,864) 1,562
Finance cost : (4,395) (805)
Share of Profit/(Loss) of
Associates : 1,134 (1,572)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (95,674) (3,625)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0997) (0.0038)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (95,674) (3,625)
Interim Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : N/A
Payable Date : N/A
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Basis of presentation and comparative figures
The condensed financial statements have been prepared in accordance with
the applicable disclosure requirements of Appendix 16 to the Rules
Governing the Listing of Securities on the Stock Exchange of the Hong Kong
Limited and Statement of Standard Accounting Practice ("SSAP") 25 "Interim
Financial Reporting" issued by the Hong Kong Society of Accountants.
The condensed financial statements have been prepared under the historical
cost convention, as modified for the revaluation of investment properties
and investments in securities. The accounting policies adopted are
consistent with those followed in the preparation of the Group's annual
financial statements for the year ended 30th November, 2002, except as
described below.
During the period, the Group has adopted SSAP 12 (Revised) "Income Taxes"
in advance of its effective date. The principal effect of the
implementation of SSAP 12 (Revised) is in relation to deferred tax. SSAP
12 (Revised) requires the adoption of a balance sheet liability method,
whereby deferred tax is recognised in respect of all temporary differences
between the carrying amounts of assets and liabilities in the condensed
financial statements and the corresponding tax bases used in the
computation of taxable profit, with limited exceptions. In the absence of
any specific transitional requirements in SSAP 12 (Revised), the new
accounting policy has been applied retrospectively. This change in
accounting policy has resulted in an increase of accumulated losses of
HK$19,807,000 as at 1st December 2002.
2. Turnover
Turnover represents the aggregate of the amounts received and
receivable from sales of properties, property rental income and cosmetics
goods sold to outside customers less returns.
3. Segmental information
Business segments
For the six months ended 31st May, 2003
Property Property Other
development leasing Cosmetics operations Consolidated
----------- ----------- -------- ---------- -------------
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Segment revenue
105,963 13,929 2,402 - 122,294
======== ======= ====== ====== ==========
Segment result
(12,235) 8,764 994 - (2,477)
======== ======= ====== ======
Unallocated corporate expenses (7,387)
---------
Loss from operations (9,864)
Finance costs (4,395)
Investment loss (1)
Other losses
(87,237) (551) - - (87,788)
Share of results of associates
(359) 930 (27) 590 1,134
---------
Loss before taxation (100,914)
Taxation 1,340
---------
Loss after taxation (99,574)
========
For the six months ended 31st May, 2002
Property Property Other
development leasing Cosmetics operations Consolidated
----------- ----------- -------- ---------- -------------
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
(restated)
Segment revenue
9,183 12,629 3,128 - 24,940
====== ======= ======= ====== ======
Segment result
(2,578) 9,746 727 - 7,895
======= ======= ======= =======
Unallocated corporate expenses (6,333)
Profit from operations 1,562
Finance costs (805)
Investment income 3,923
Other losses
(3,868) - - (1) (3,869)
Share of results of associates
(23) - (1,073) (476) (1,572)
----------
Loss before taxation (761)
Taxation (3,582)
-----------
Loss after taxation (4,343)
=========
Geographical segments
Revenue by Contribution to (loss)
geographical markets profit from operations
Six months ended 31st May, Six months ended 31st May,
2003 2002 2003 2002
---- ---- ---- -----
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong 111,902 16,514 (9,031) 1,008
Elsewhere in the PRC
10,392 8,426 6,554 6,887
----- ----- ----- -----
122,294 24,940 (2,477) 7,895
====== ======
Unallocated corporate expenses (7,387) (6,333)
------ -------
(Loss) Profit from operations (9,864) 1,562
====== =====
4. Staff expenses and depreciation
Six months ended 31st May,
2003 2002
HK$'000 HK$'000
Staff expenses
- Selling & marketing expenses (34) (130)
- Administrative expenses (1,976) (2,434)
- Directors' emoluments (471) (402)
--------- ---------
(2,481) (2,966)
======== ========
Depreciation
- Selling & marketing expenses - (48)
- Administrative expenses (63) (22)
---------- ---------
(63) (70)
========= ========
5. Other operating expenses
Six months ended 31st May,
2003 2002
HK$'000 HK$'000
Allowances on receivables (1,622) (4,870)
Legal expenses in respect of lawsuits
(3,898) (1,846)
Loss on disposal of investment properties
(73) -
---------- ----------
(5,593) (6,716)
========= ==========
6. Investment (loss) income
Six months ended 31st May,
2003 2002
HK$'000 HK$'000
Unrealised holding (loss) gain on other investments
(806) 1,408
Interest income 805 1,509
Dividend income - unlisted investment
- 1,006
----- -------
(1) 3,923
===== ======
7. Other losses
Six months ended 31st May,
2003 2002
HK$'000 HK$'000
Impairment loss on interests in associates
- amounts due from associates (87,788) (3,869)
========= ========
8. Taxation
Six months ended 31st May,
2003 2002
HK$'000 HK$'000
(restated)
The credit (charge) comprises:
Deferred tax (490) (2,696)
----- -------
Current tax
Company and subsidiaries
- Hong Kong
current year (578) (796)
overprovision in prior years 2,542 5
----- ------
1,964 (791)
- Other than Hong Kong (93) -
----- ------
1,871 (791)
------ ------
Associates
- Hong Kong (103) (80)
- Other than Hong Kong 62 (15)
----- ------
(41) (95)
----- ------
1,340 (3,582)
===== =======
Hong Kong Profits Tax has been provided for at the rate of 17.5% (six
months ended 31st May, 2002: 16%) on the estimated assessable profits for
the period. Taxation on profits of subsidiaries and associates arising
outside Hong Kong has been provided for in accordance with the relevant
local jurisdictions.
Deferred tax has been provided for at the rate that is expected to
apply in the period when the liability is settled or the asset is
realised.
9. Loss per share
The calculation of the basic loss per share is based on the loss
transfer to reserves for the period of HK$ 95,674,000 (six months ended
31st May, 2002 (restated): HK$3,625,000) and on 959,899,416 (as at 31st
May, 2002: 959,899,416) ordinary shares in issue throughout the period.
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