SUNDAY COMM<00866> - Results Announcement
SUNDAY Communications Limited announced on 18/08/2005:
(stock code: 00866 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
(restated)
Turnover : 561,063 574,987
Profit/(Loss) from Operations : (49,253) 32,129
Finance cost : (12,560) (14,548)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A (256)
Profit/(Loss) after Tax & MI : (61,813) 17,325
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0207) 0.0058
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (61,813) 17,325
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. PRINCIPAL ACCOUNTING POLICIES
(a) Basis of preparation and accounting policies
These interim accounts are prepared in accordance with Hong Kong
Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by
the Hong Kong Institute of Certified Public Accountants ("HKICPA"). These
interim accounts should be read in conjunction with the 2004 annual
accounts.
The accounting policies and methods of computation used in the preparation
of these interim accounts are consistent with those used in the annual
accounts for the year ended 31st December 2004 except that the Group has
changed certain of its accounting policies following its adoption of new/
revised Hong Kong Financial Reporting Standards and Hong Kong Accounting
Standards ("new HKFRSs") which are effective for accounting periods
commencing on or after 1st January 2005.
These interim accounts have been prepared in accordance with the HKFRSs
and interpretations issued by HKICPA and effective as at the time of
preparing the interim accounts. The HKFRSs and interpretations that will
be applicable at 31st December 2005, including those that will be
applicable on an optional basis, are not known with certainty at the time
of preparing these interim accounts.
The changes to the Group's accounting policies and the effect of adopting
these new policies are set out in note 1(b) below.
(b) Effect of adopting new HKFRSs
In 2005, the Group adopted the HKFRSs below, which are relevant to its
operations. The 2004 comparatives have been amended as required to
conform with the current period's presentation.
HKAS 1 Presentation of Financial Statements
HKAS 2 Inventories
HKAS 7 Cash Flow Statements
HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employees Benefits
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowing Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial Statements
HKAS 31 Investments in Joint Ventures
HKAS 32 Financial Instruments Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 34 Interim Financial Reporting
HKAS 36 Impairment of Assets
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKFRS 2 Share-based Payments
The adoption of HKASs 1, 2, 7, 8, 10, 12, 14, 17, 18, 19, 21, 23,
24, 27, 31, 32, 33, 34, 36, 37, 38, 39 and HKFRS 2 did not result in
substantial changes to the Group's accounting policies. In summary:
- HKAS 1 has affected certain presentation in the balance
sheet, profit and loss account and statement of changes in equity.
- HKASs 2, 7, 8, 10, 12, 14, 17, 18, 19, 23, 27, 31, 32, 33, 34,
36, 37, 38, 39 and HKFRS 2 had no material effect on the Group's policies.
- HKAS 21 had no material effect on the Group's policy. The
functional currency of each of the consolidated entities has been re-
evaluated based on the guidance to the revised standard. All the Group
entities have the same functional currency as the presentation currency
for respective entity accounts.
- HKAS 24 has affected the identification of related parties and
certain other related-party disclosures.
The adoption of HKAS 16 has resulted in a change in accounting
policy relating to recognition of fixed assets and liabilities subject to
retirement obligations at fair value.
All changes in the accounting policies have been made in
accordance with the transition provisions in the respective standards.
All standards adopted by the Group require retrospective application other
than:
- HKAS 39 which recognises all derivatives at fair value on the balance
sheet on 1st January 2005 and adjusts the balance to retained earnings as
at 1st January 2005.
- HKFRS 2 which requires retrospective application for all equity
instruments granted after 7th November 2002 and not vested at 1st January
2005.
The effect of changes in the accounting policy on loss
attributable to equity holders of the Company and loss per share are
stated below.
For the six months ended For the year ended
30th June 2005 30th June 2004 31st December 2004
HK$'000 HK$'000 HK$'000
Increase in loss
attributable
to equity
holders 1,260 1,112 2,224
----------------------------------------------------
Increase in
loss per
share (basic
and diluted) 0.042 cents 0.037 cents 0.074 cents
----------------------------------------------------
2. Turnover and segment information
The Group is principally engaged in two business segments in Hong Kong,
namely, mobile services and sales of mobile phones and accessories.
Turnover and contribution to (loss)/profit from operations by business
segments for the six months ended 30th June 2005 and 2004 are as follows:
Six months ended 30th June,
Turnover Contribution to (loss)/
profit from operations
2005 2004 2005 2004
HK$'000 HK$'000 HK$'000 HK$'000
(restated)
Mobile services 490,956 521,034 (23,436) 61,375
Sales of mobile phones and
accessories 70,107 53,953 (26,128) (29,456)
--------------------------------------
561,063 574,987 (49,564) 31,919
======== ====== ========= ========
3. Expenses by nature
Six months ended 30th June,
2005 2004
HK$'000 HK$'000
(restated)
Cost of inventories sold 81,437 66,999
Depreciation:
- owned fixed assets 110,651 116,558
- leased fixed assets 254 -
Loss on disposals of fixed assets 71 140
Operating leases in respect of:
- buildings, including transmission
sites 109,811 91,960
- leased lines 39,900 29,676
======== =======
During the six months ended 30th June 2005, the Group incurred HK$83,158,
000 (2004: $13,076,000) of operating expenses in relation to the
development of its 3G business after capitalisation of costs of HK$21,015
,000 (2004: HK$10,513,000) into fixed assets, which has been included in
the Group's results before arriving at the (loss)/profit from operations.
4. Taxation
No provision for Hong Kong profits tax and overseas taxation has been made
as the Group has no assessable profit for the six months ended 30th June
2005 (2004: Nil).
5. (Loss)/Earnings per share
(a) Basic (loss)/earnings per share
The calculation of basic earnings per share is based on the Group's loss
attributable to equity holders for the period of HK$61,813,000 (2004:
profit of HK$17,325,000) and the 2,990,000,000 shares (2004: 2,990,000,000
shares) in issue during the period.
(b) Diluted (loss)/earnings per share
There is no dilutive effect upon exercise of the share options on the (
loss)/earnings per share for the six-month period ended 30th June 2005 and
2004 since the exercise prices for the share options were above the
average fair value of the shares.
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