KWONG SANG HONG<00189> - Results Announcement
The Kwong Sang Hong International Limited announced on 15/03/2004:
(stock code: 00189 )
Year end date: 30/11/2003
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 1/12/2002 from 1/12/2001
to 30/11/2003 to 30/11/2002
Note ('000 ) ('000 )
Turnover : 144,618 49,044
Profit/(Loss) from Operations : 34,369 (150,846)
Finance cost : (8,231) (2,526)
Share of Profit/(Loss) of
Associates : 1,932 (1,093)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (73,612) (256,307)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0767) (0.267)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (73,612) (256,307)
Final Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final 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
In the current year, the Group has adopted Statements of Standard
Accounting Practice ("SSAP") No. 12 (Revised) "Income Taxes" issued by the
Hong Kong Society of Accountants. The principal effect of the
implementation of the revised standard is in relation to deferred tax. It
requires the adoption of a balance sheet liability method, whereby
deferred tax is recognised in respect of all temporary differences between
the carrying amount of assets and liabilities in the financial statements
and the corresponding tax basis 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 in accumulated losses of HK$19,807,000 as at 1st December,
2002 (a decrease in accumulated profits of HK$28,494,000 as at 1st
December, 2001) and an increase in the loss for the year of HK$18,059,000
(2002: a decrease in the loss for the year of HK$8,687,000).
2. Turnover
Turnover represents the aggregate of the amounts received and receivable
from sales of properties, property rental income and cosmetics goods sold
to outside customers less returns.
3. Segmental information
Business segments
For management purposes, the Group is currently organised into three
operating divisions - property development, property leasing and
cosmetics. These divisions are the basis on which the Group reports its
primary segment information.
Principal activities are as follows:
Property development - Property development and sales of
properties
Property leasing - Property rental
Cosmetics - Manufacturing and trading in cosmetics products
Segment information about these businesses is presented below.
For the year ended 30th November, 2003
Property Property Other
development leasing Cosmetics operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Segment revenue 111,242 28,948 4,428 - 144,618
======= ====== ===== ======= ========
Segment result (16,031) 68,802 1,495 - 54,266
======== ====== ===== =======
Unallocated corporate expenses (19,897)
---------
Profit from operations 34,369
Finance costs (8,231)
Investment income 1,632
Other losses (87,260) 321 - (182) (87,121)
Share of results of associates
(359) 1,129 (51) 1,213 1,932
---------
Loss before taxation (57,419)
Taxation (18,703)
---------
Loss after taxation (76,122)
=========
For the year ended 30th November, 2002
Property Property Other
development leasing Cosmetics operations Consolidated
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
(Restated)
Segment revenue 16,800 25,164 7,080 - 49,044
====== ====== ===== ======= ==========
Segment result (85,354) (50,112) 1,776 - (133,690)
======== ======== ===== =======
Unallocated corporate expenses (17,156)
-----------
Loss from operations (150,846)
Finance costs (2,526)
Investment income 5,464
Other losses (150,780) 1,109 - (2,059) (151,730)
Share of results of associates
(240) - (1,096) 243 (1,093)
----------
Loss before taxation (300,731)
Taxation 7,478
----------
Loss after taxation (293,253)
===========
Geographical segments
The following table provides an analysis of the Group's revenue and
contribution to profit (loss) from operations by geographical market,
irrespective of the origin of the goods/services:
Revenue by Contribution to profit (loss)
geographical market from operations
2003 2002 2003 2002
HK$'000 HK$'000 HK$'000 HK$'000
Hong Kong 122,334 32,531 (13,309) (103,265)
Elsewhere in the People's Republic
of China ("PRC")
22,284 16,513 67,575 (30,425)
------- ------ ------- ---------
144,618 49,044 54,266 (133,690)
======= ====== ======= =========
Unallocated corporate expenses
(19,897) (17,156)
-------- ---------
Profit (loss) from operations 34,369 (150,846)
======== =========
4. Staff expenses
Year ended 30th November,
2003 2002
HK$'000 HK$'000
Directors' emoluments 955 928
Other staff costs 3,614 4,738
Provident fund scheme contributions 122 233
----- -----
Total staff costs 4,691 5,899
===== =====
5. Other operating income
Year ended 30th November,
2003 2002
HK$'000 HK$'000
Included in other operating income:
Net surplus on revaluation of investment properties
45,100 -
Negative goodwill released 2,537 137
Forfeiture of unclaimed dividends 2,376 -
Forfeiture of sales deposits received 2,368 3,741
Claims received on price difference from forfeited
property sales - 1,231
======= =====
6. Other operating expenses
Year ended 30th November,
2003 2002
HK$'000 HK$'000
Legal expenses in respect of lawsuits 13,882 2,644
Allowance for properties held for sale 3,580 12,795
Allowance for loans receivable 1,900 12,521
Loss on disposals of investment properties 73 -
Impairment loss recognised in respect of properties
held for development - 66,114
Deficit on revaluation of investment properties - 69,300
Loss on disposals of plant and equipment - 589
------- -------
19,435 163,963
======= =======
7. Other losses
Year ended 30th November,
2003 2002
HK$'000 HK$'000
Impairment loss on interests in associates
- amounts due from associates 86,960 149,672
- interest in an associate - 2,058
Loss on disposal of an associate 161 -
------ -------
87,121 151,730
====== =======
8. Taxation
Year ended 30th November,
2003 2002
HK$'000 HK$'000
(Restated)
The charge (credit) comprises:
Current tax
The Company and subsidiaries
- Hong Kong
current year 416 1,057
prior years (185) (41)
- Other than Hong Kong 217 -
----- ------
448 1,016
----- ------
Associates
- Hong Kong 209 176
- Other than Hong Kong (13) 17
----- ------
196 193
----- ------
644 1,209
----- ------
Deferred tax
The Company and subsidiaries
- Hong Kong
current year (2,465) 297
attributable to change in tax rate (124) -
- Other than Hong Kong 20,648 (8,984)
------- -------
18,059 (8,687)
------- -------
18,703 (7,478)
======= =======
Hong Kong Profits Tax has been provided for at the rate of 17.5% (2002:
16.0%) 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.
Deferred tax has been provided for at the rates that are expected to be
applied in the year 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 for the
year of HK$73,612,000 (2002: (restated): HK$256,307,000) and on
959,899,416 (2002: 959,899,416) ordinary shares in issue during the year.
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