NEW WORLD TMT<00301> - Results Announcement
New World TMT Limited announced on 15/03/2005:
(stock code: 00301 )
Year end date: 30/06/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/07/2004 from 01/07/2003
to 31/12/2004 to 31/12/2003
Note ('000 ) ('000 )
Turnover : 214,145 183,153
Profit/(Loss) from Operations : (127,987) (114,084)
Finance cost : (48,598) (38,713)
Share of Profit/(Loss) of
Associates : (2,822) (106,540)
Share of Profit/(Loss) of
Jointly Controlled Entities : (9,276) (2,750)
Profit/(Loss) after Tax & MI : (196,242) (270,190)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.21) (0.28)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (196,242) (270,190)
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:
ÿÿ
1. Basis of preparation and accounting policies
The unaudited consolidated condensed interim accounts for the current
period (the "interim accounts") are prepared in accordance with Statement
of Standard Accounting Practice 25, "Interim Financial Reporting", issued
by the Hong Kong Institute of Certified Public Accountants (the "HKICPA")
and Appendix 16 of the Rules Governing the Listing of Securities on The
Stock Exchange of Hong Kong Limited (the "Listing Rules"). The interim
accounts should be read in conjunction with the 2004 annual accounts.
The principal accounting policies and methods of computation used in the
preparation of the condensed interim accounts are consistent with those
used in the annual accounts for the year ended 30 June 2004, except that
the Group early adopted the accounting standards below with effect from 1
July 2004:
Hong Kong Financial Reporting Standard 3 ("HKFRS 3") (issued 2004)
Business Combination
Hong Kong Accounting Standard 36 ("HKAS 36") (revised 2004) Impairment of
Assets
Hong Kong Accounting Standard 38 ("HKAS 38") (revised 2004) Intangible
Assets
The adoption of these standards resulted in changes to certain accounting
policies of the Group. The revised policies are:
(i) Assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment. Assets that are
subject to amortization are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the
asset's carrying amount exceeds its recoverable amount. The recoverable
amount is the higher of an asset's fair value less costs to sell and value
in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows.
(ii) Goodwill represents the excess of the cost of an acquisition over
the fair value of the Group's share of the net identifiable assets of the
acquired subsidiary company/associate at the date of acquisition. Goodwill
on acquisitions of subsidiary companies is included in intangible assets.
Goodwill on acquisitions of associates is included in investments in
associates. Goodwill is tested annually for impairment and carried at cost
less accumulated impairment losses. Gains and losses on the disposal of an
entity include the carrying amount of goodwill relating to the entity
sold.
The key impacts to the Group are as follow:
- The Group ceased amortization of goodwill from 1 July 2004;
- Accumulated amortization as at 30 June 2004 has been eliminated
with a corresponding decrease in the cost of goodwill; and
- Goodwill is tested annually for impairment, as well as when there
are indications of impairment.
All changes in the accounting policies have been made in accordance with
the transitional provisions in the respective standards and have been
applied prospectively.
The early adoption of the above standards has not resulted in any changes
to the opening balances as at 1 July 2004 and any significant impact to
the results for the six months ended 31 December 2004.
2 Other charges, net
Unaudited Unaudited
Six months ended Six months ended
31.12.2004 31.12.2003
HK$'000 HK$'000
Impairment losses on:
Intangible assets (59,025) -
Fixed assets (1,314) -
Other investments (2,804) -
Provision for:
Amounts due from a
jointly controlled
entity (30) -
Amounts due from
associated companies (33,939) -
Trade and other
receivables (55,839) (4,673)
Deposits for proposed
investments (35,647) (15,146)
Write-down of inventories
to net realizable value (10,252) (41,481)
Loss on disposal of
fixed assets (66) (45)
Write-back of impairment
loss on other investments - 2,704
Write-back of provision for
amounts due from a
jointly controlled entity 2,776 -
Gain in relation to
disposal of Wuhan Bridge
Construction Co., Ltd
by NWS Holdings Limited 154,878 -
----------------------------------
(41,262) (58,641)
==================================
3 Loss per share
The calculation of loss per share is based on the loss for the
period of HK$196,242,000 (six months ended 31 December 2003: HK$270,190,
000) and the weighted average of 952,180,007 (six months ended 31 December
2003: 952,180,007) shares in issue during the period.
Diluted loss per share for the periods ended 31 December 2003 and
2004 is not presented as the Company has no dilutive potential shares at
period end.
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