CR PEOPLESPHONE<00331> - Results Announcement
China Resources Peoples Telephone Company Limited announced on 29/08/2005:
(stock code: 00331 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: Unqualified
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 : 896,176 830,786
Profit/(Loss) from Operations : 143,039 162,064
Finance cost : (2,195) (14,647)
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 114,569 118,720
% Change over Last Period : -3.5 %
EPS/(LPS)-Basic (in dollars) : 0.15 0.20
-Diluted (in dollars) : 0.15 0.20
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 114,569 118,720
Interim Dividend : $0.075 $0.13
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 20/09/2005 to 21/09/2005 bdi.
Payable Date : 13/10/2005
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 PREPARATION
These interim financial statements have been prepared in accordance with
Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting"
issued by the Hong Kong Institute of Certified Public Accountants
("HKICPA") and the same accounting policies adopted in the 2004 annual
financial statements, except for the accounting policy changes that are
expected to be reflected in the 2005 annual financial statements. Details
of these changes in accounting policies are set out in note 2.
2. CHANGE IN ACCOUNTING POLICY
HKICPA has issued a number of new and revised Hong Kong Financial
Reporting Standards (HKFRSs, which collectively includes HKASs and
Interpretations) that are effective or available for early adoption for
accounting periods beginning on or after 1 January 2005. The Board of
Directors has determined the accounting policies to be adopted in the
preparation of the Company's annual financial statements for the year
ending 31 December 2005, on the basis of HKFRSs currently in issue.
The HKFRSs that will be effective or are available for voluntary early
adoption in the annual financial statements for the year ending
31 December 2005 may be affected by the issue of additional
interpretation(s) or other changes announced by the HKICPA subsequent to
the date of issuance of the interim financial report. Therefore the
policies that will be applied in the Company's financial statements for
that period cannot be determined with certainty at the date of issuance of
the interim financial report.
The following tables set out the summaries of the effect of changes in
accounting policies for the annual accounting period beginning on
1 January 2005 which have been reflected in the interim financial report.
(a) Summary of the effect of changes in the accounting policies
The following table sets out the adjustments that have been made to the
opening balances at 1 January 2005 are the aggregate effect of
retrospective adjustment to the net assets as at 31 December 2004 and the
opening balance adjustments made as at 1 January 2005.
Employee Share
Based
Effect of new policy Retained Compensation Total
( (decrease) / increase) Profit Reserve Equity
$'000 $'000 $'000
Prior period adjustment:
HKAS 17
Leasehold land and buildings
held for own use - - -
HKFRS 2
Equity settled share-
based transactions (947) 947 -
------------------------------------------
Total effect at 1 January 2005 (947) 947 -
==========================================
(b) Summary on profit after taxation for the six months ended 30 June 2005
(estimated) and 30 June 2004 (as adjusted)
In respect of the six months period ended 30 June 2005, the following
table provides estimates of the extent to which the profits for that
period are higher or lower than they would have been had the previous
policies still been applied in the interim period, where it is practicable
to make such estimates.
In respect of the six months period ended 30 June 2004, the table
discloses that adjustments that have been made to the profits as
previously reported for that period, in accordance with the transitional
provisions of the respective HKFRSs. As retrospective adjustments have not
been made for all changes in policies, as explained in note 3 and 4, the
amounts shown for the six months period ended 30 June2004 may not be
comparable to the amounts shown for the current interim period.
Six months ended 30 June
Effect of new policy ( (decrease) / increase) 2005 2004
$'000 $'000
HKAS 17
Leasehold land and buildings
held for own use - -
HKFRS 2
Equity settled share-based transactions (235) (316)
--------------------------
Total effect for the period (235) (316)
==========================
Effect on earnings per share:
- basic 0.03 cents 0.05 cents
- diluted 0.03 cents 0.05 cents
==========================
3. EMPLOYEE SHARE OPTION SCHEME (HKFRS 2, SHARE-BASED PAYMENT)
In the prior year, no amount was recognised when employees (which term
includes directors) were granted share options over shares in the Company.
If the employees chose to exercise the options, the nominal amount of
share capital and share premium were credited only to the extent of the
option's exercise price receivable.
With effect from 1 January 2005, in order to comply with HKFRS 2, the
Company recognises the fair value of such share options as an expense in
the income statement. A corresponding increase is recognised in a capital
reserve, "Employee Share Based Compensation Reserve" within equity.
Where the employees are required to meet vesting conditions before they
become entitled to the options, the Company recognises the fair value of
the options granted over the vesting period.
If an employee chooses to exercise options, the related capital reserve is
transferred to share capital and share premium, together with the exercise
price. If the options lapse unexercised the related capital reserve is
transfer directly to retained earnings.
The new accounting policy has been applied retrospectively with
comparatives restated in accordance with HKFRS 2. The Company has no
options granted to employees on or before 7 November 2002.
The amount of the prior period adjustment and the effect on the results
for the six months ended 30 June 2005, and the reserves as of that date,
are set out in the above summary. No adjustment to the opening balances as
at 1 January 2004 is required as no options existed at that time which
were unvested at 1 January 2005.
The amount charged to the income statement as a result of the change of
policy increased staff costs for the six months ended 30 June 2005 by $
235,000 (six months ended 30 June 2004: $316,000) with the corresponding
amounts credited to the capital reserve.
4. LEASEHOLD LAND AND BUILDINGS HELD FOR OWN USE (HKAS 17, LEASES)
The adoption of revised HKAS 17 "Leases" has resulted in a change in the
accounting policy relating to the classification of leasehold land. In
accordance with HKAS 17, a lease of land and building should be split into
a lease of land element and the building element of the lease at the
inception of the lease.
Any pre-paid land for acquiring the land leases, or other lease payments,
are amortised on a straight line basis over the lease term. The
amortisation charge is recognised in the income statement immediately.
Any buildings held for own use which are situated on such land leases
continue to be presented as part of property, plant and equipment.
The new accounting policies have been adopted retrospectively.
5. TURNOVER
The principal activity of the Company is the provision of mobile
telecommunications and related services.
Turnover represents the value of goods sold and airtime and services
charged to subscribers, net of returns and discounts:
Six months ended 30 June
2005 2004
$'000 $'000
(restated)
Sales of handsets and accessories 232,324 176,652
Airtime and service charges 663,852 654,134
-------------------------
896,176 830,786
=========================
6. SEGMENT REPORTING
For the six months ended 30 June 2005, the Company's turnover and
operating profit were solely attributable to its mobile communications
operations in the Special Administrative Region of Hong Kong. Accordingly,
no analysis by either business or geographical segment is included.
7. BASIC AND DILUTED EARNINGS PER SHARE
a. Basic earnings per share
Six months ended 30 June
2005 2004
$'000 $'000
(restated)
Profits attributable to shareholders for the period
114,569 118,720
==========================
Number of shares
2005 2004
At 1 January 743,641,019 433,000,000
Weighted average number of Ordinary
Shares for new issued shares - 74,725,000
Weighted average number of Ordinary
Shares upon conversion of
Preference Shares - 77,062,500
Weighted average number of Ordinary
Shares issued pursuant to the
Capitalisation Issue - 3,533,010
--------------------------------
At 30 June 743,641,019 588,320,510
================================
Basic earnings per share (HK$) 0.15 0.20
================================
b. Diluted earnings per share
No diluted earnings per share is presented for the six months ended 30
June 2005 as the existence of unexercised options during the period has no
dilutive effect on the calculation of diluted earnings per share for the
period (2004: nil).
8. DIVIDEND
Six months ended 30 June
Dividends attributable to interim period 2005 2004
$'000 $'000
(restated)
First quarter dividend declared and payable
during the interim period of $0.06 per share
[2004: Nil] 44,618 -
Second quarter dividend declared and paid
after the interim period of $0.075 per share
[2004: Nil] 55,773 -
Interim dividend declared and paid
after the interim period
[2004: interim dividend of $0.13 per share] - 96,673
--------------------------
100,391 96,673
==========================
Notes:
(1) The first quarter dividend of $44,618,000 was paid on 13 July 2005.
(2) At a Board meeting held on 29 August 2005, the Directors declared the
second interim dividend of $55,773,000 ($0.075 per share) for the three
months ended 30 June 2005 (2004: Nil). This declared dividend is not
reflected as a dividend payable in these interim financial statements but
will be accounted for as an appropriation of retained profit for the year
ending 31 December 2005.
|