Listed Company Information
 

KWONG SANG HONG<00189> - Results Announcement

The Kwong Sang Hong International Limited announced on 18/08/2004:
(stock code: 00189 )
Year end date: 30/11/2004
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/12/2003    from 01/12/2002
                                     to 31/05/2004      to 31/05/2003 
                               Note  ('000      )       ('000      )
Turnover                           : 20,367             122,294           
Profit/(Loss) from Operations      : 8,439              (9,864)           
Finance cost                       : (2,384)            (4,395)           
Share of Profit/(Loss) of 
  Associates                       : (35)               1,134             
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 6,430              (95,674)          
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.0067             (0.0997)          
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 6,430              (95,674)          
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 
Statement of Standard Accounting Practice 25 "Interim financial reporting" 
issued by the Hong Kong Society of Accountants and the applicable 
disclosure requirements of Appendix 16 to the Rules Governing the Listing 
of Securities on The Stock Exchange of Hong Kong Limited.

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, 2003.

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.      Segment 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 six months ended 31st May, 2004

        Property        Property                Other
        development     leasing Cosmetics       operations    Consolidated
        HK$'000         HK$'000 HK$'000         HK$'000         HK$'000

Segment
 revenue2,136           16,075  2,156           -               20,367
        ========        ======= =======         ======          =======

Segment
 result (1,667)         13,134  584             -               12,051
        ========        ======= ========        ======                  

Unallocated corporate expenses                                  (3,612)
                                                                --------
Profit
 from
 operations                                                     8,439
Finance
 costs                                                          (2,384)
Investment
 income                                                         2,771
Other
 gain   158             -       -               -               158
Share
 of
 results
 of
 associates(614)        -       (25)            604             (35)
                                                                ----------
Profit
 before
 taxation                                                       8,949
Taxation                                                        (2,738)
                                                                ----------
Profit
 after
 taxation                                                       6,211 
                                                                ==========

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
 revenue105,963         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)
                                                                =========
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
                Six months ended 31st May,      Six months ended 31st May,
                2004            2003            2004            2003
                HK$'000         HK$'000         HK$'000         HK$'000
Hong Kong       7,232           111,902         1,094           (9,031)
Elsewhere in
 the People's
 Republic
 of China       13,135          10,392          10,957          6,554
                --------        ---------       ---------       ---------
                20,367          122,294         12,051          (2,477)
                ========        =========
Unallocated
 corporate
 expenses                                       (3,612)         (7,387)
                                                ---------       ---------
Profit (loss) from operations                   8,439           (9,864)
                                                =========       =========

4.      Other operating income

                                        Six months ended 31st May,
                                        2004            2003
                                        HK$'000       HK$'000
Included in other operating income:

Settlement received in respect
 of a lawsuit                           5,000           -   
Forfeiture of sales deposits received   30              2,231
                                        =======         ======= 

5.      Staff expenses and depreciation

                                                Six months ended 31st May,
                                                   2004           2003
                                                 HK$'000       HK$'000
        
        Directors' emoluments                   500             471
        Other staff expenses                    1,657           1,950
        Provident fund scheme contributions     5               60
                                                _______         _______
                                                2,162           2,481 
                                                _______         _______
                                                _______         _______
        
        Depreciation                            148             63 
                                                _______         _______
                                                _______         _______

6.      Other operating expenses

                                                Six months ended 31st May,
                                            2004                  2003
                                          HK$'000              HK$'000

Provision for legal expenses and other
 charges in respect of a lawsuit           3,466                -   
        Allowance for loans receivable     2,371                1,622
        Legal expenses in respect 
        of lawsuits                          717                3,898
        Loss on disposal of investment
        properties                            -                    73 
                                        _______                 _______
                                         6,554                  5,593
                                        _______                 _______
                                        _______                 _______

7.      Finance costs

                                        Six months ended 31st May,
                                           2004           2003
                                        HK$'000           HK$'000

Interest on bank loans, overdrafts
 and other borrowings
  - wholly repayable within five years  3,355           6,451   
  - wholly repayable after five years   33              -   
        Other borrowing costs           695             9
                                        _______         _______
                                        4,083           6,460
        Less: Amount capitalised        (1,699)         (2,065)
                                        _______         _______
                                        2,384           4,395 
                                        _______         _______
                                        _______         _______

8.      Investment income (loss)

                                        Six months ended 31st May,
                                          2004            2003
                                        HK$'000          HK$'000
        
        Interest income                 699             805
        Write-back of provision on
        amount due from an investee
        company                         2,094           -   
        Dividend income - unlisted 
        investments                     382             -   
        Unrealised holding loss on
         other investments              (404)           (806)
                                        _______         _______
                                        2,771           (1)
                                        _______         _______
                                        _______         _______

9.      Other gain (loss)

                                                Six months ended 31st May,
                                                   2004           2003
                                                HK$'000       HK$'000

Write-back of impairment loss (recognised)
 on amounts due from associates                 158             (87,788)
                                                _______         _______
                                                _______         _______

10.     Taxation        

                                                Six months ended 31st May,
                                                   2004           2003
                                                HK$'000           HK$'000
        The credit (charge) comprises:

        Current tax
        The Company and subsidiaries
          - Hong Kong
              current period                    (188)           (578)
              prior years                       7               2,542
          - Other than Hong Kong                (124)           (93) 
                                                _______         _______
                                                (305)           1,871
                                                _______         _______
        Associates 
          - Hong Kong                           (111)           (103)
          - Other than Hong Kong                -               62
                                                _______         _______
                                                (111)           (41)
                                                _______         _______
                                                (416)           1,830
                                                _______         _______

        Deferred tax
        The Company and subsidiaries
          - Hong Kong
              current year                       629            1,725
              attributable to change in tax rate   -            124
          - Other than Hong Kong                (2,951)         (2,339)
                                                _______         _______
                                                (2,322)         (490)
                                                _______         _______
                                                (2,738)         1,340
                                                _______         _______
                                                _______         _______


        Hong Kong Profits Tax has been provided for at the rate of 17.5% 
(six months ended 31st May, 2003: 17.5%) 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 rates that are expected 
to be applied in the period when the liability is settled or the asset is 
realised.

11.     Earnings (loss) per share

        The calculation of the basic earnings per share is based on the 
profit attributable to shareholders for the six months ended 31st May, 
2004 of HK$6,430,000 (six months ended 31st May, 2003: loss attributable 
to shareholders of HK$95,674,000) and on 959,899,416 (at 31st May, 2003: 
959,899,416) ordinary shares in issue throughout the period.