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.
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