Listed Company Information
 

SHIMAO INT'L<00649> - Results Announcement

Shimao International Holdings Limited announced on 15/09/2005:
(stock code: 00649 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

                                                        (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      )
Turnover                        2  : 6,061              3,423             
Profit/(Loss) from Operations      : 4,882              (8,268)           
Finance cost                       : (2,703)            (1,358)           
Share of Profit/(Loss) of 
  Associates                       : 8,849              108,491           
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 9,179              98,019            
% Change over Last Period          : -90.6     %
EPS/(LPS)-Basic (in dollars)    3  : 0.0111             0.1184            
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 9,179              98,019            
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

The unaudited condensed interim financial information has been prepared in 
accordance with the applicable disclosure provisions of the Rules 
Governing the Listing of Securities on The Stock Exchange of Hong Kong 
Limited and in compliance with Hong Kong Accounting Standard ("HKAS") 34 
"Interim Financial Reporting" issued by the Hong Kong Institute of 
Certified Public Accountants.

The accounting policies used in the preparation of the unaudited condensed 
interim financial information 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 
and 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.
        
(b) Changes in accounting policies

The adoption of the following HKFRSs, which include all HKASs and 
applicable Interpretations ("HKAS-Ints" and "HK-Ints"), that necessitates 
material changes in accounting policies or presentations of financial 
information are summarised as follows:

(i)  The adoption of HKAS 1 "Presentation of Financial Statements" has 
affected the presentation of share of net results after tax of an 
associated company.

(ii) The adoption of HKAS 17 "Leases" has resulted in a change in 
accounting policy relating to leasehold land which was previously included 
in fixed assets and completed properties held for sale and carried at cost 
less accumulated depreciation and impairment and the lower of cost and net 
realisable value, respectively. In accordance with the provisions of 
HKAS 17, the leasehold land is regarded as operating leases and the lease 
premium and other costs for acquiring the leasehold land are amortised 
over the terms of the leases.  The adoption of HKAS 17 does not have any 
material effect to the Group.

(iii)The adoption of HKFRS 3 "Business Combinations" and HKAS 36 
"Impairment of Assets" do not permit to amortise the goodwill on a 
straight-line basis over a period of not exceeding 20 years.  Also, 
goodwill is tested annually for impairment, as well as when there are 
indications of impairment. If the cost of acquisition is less than the 
fair values of the net assets acquired, the difference is recognised 
directly in the profit and loss account as negative goodwill.  
        
(iv) The adoption of HKAS 40 "Investment Property" has resulted in a 
change in the accounting policy whereby changes in fair values of 
investment properties are recorded in the profit and loss account.  In 
prior years, the increases in fair value were credited to the investment 
properties revaluation reserve. Decreases were first set off against 
increases on earlier valuations on a portfolio basis and thereafter 
expensed in the profit and loss account. 

The adoption of HKAS 40 has been applied retrospectively, however, there 
is no effect on the equity as at 1st January 2004 and 2005.

(v)  The adoption of HKAS-Int 21 "Income Taxes - Recovery of Revalued Non
-Depreciable Assets" has resulted in a change in the accounting policy 
relating to the measurement of deferred tax liabilities arising from the 
revaluation of investment properties. Such deferred tax liabilities are 
measured on the basis of tax consequences that would follow from recovery 
of carrying amount of assets through use. In prior years, carrying amount 
of assets was expected to be recovered through sale. 

The adoption of HKAS-Int 21 has been applied retrospectively and 
comparatives presented have been restated to conform to the changed 
policy. 

(vi) The adoption of HKAS 32 "Financial Instruments: Disclosure and 
Presentation" and HKAS 39 "Financial Instruments: Recognition and 
Measurement", has set up the basis for recognition, measurement, 
derecognition and disclosure of financial instruments.  Borrowings are 
recognised initially at fair value net of transaction costs incurred and 
subsequently stated at amortised cost.  The fair value of the liability 
component of a convertible note is determined using a market interest rate 
for an equivalent non-convertible note and is recorded on an amortised 
cost basis until extinguished on conversion or maturity of the note.  The 
remainder of the proceeds is allocated to the conversion option, which is 
recognised and included in reserves as an equity component of a 
convertible note.    

(vii)The adoption of Hong Kong Interpretation ("HK-Int") 3 "Revenue - Pre
-completion Contracts for the Sale of Development Properties" has resulted 
in a change in accounting policy relating to the recognition of revenue 
from sales of properties under development in advance of completion. In 
prior years, sales of properties under development in advance of 
completion were recognised over the course of the development based on the 
proportion of construction work completed or if lower, the proportion of 
sales proceeds received.  In accordance with HK-Int 3, sales of properties 
are recognised when the risk and rewards of the property have been passed 
to the customers.
 

2  Turnover 

The Group is principally engaged in property investment and development of 
property projects in Hong Kong and the Mainland China. Turnover comprises 
gross income from rental operation and revenue from sales of properties.

                                         Six months ended 30th June
                                                     2005      2004
                                                  HK$'000   HK$'000
Company and subsidiaries                
 Rental income                                      6,061     3,423
                        
Share of an associated company          
 Sales of properties                               30,962   293,212
                                                   ------   -------
                                                   37,023   296,635
                                                   ======   =======

3  Basic earnings per share 

The calculation of basic earnings per share is based on the profit 
attributable to shareholders of HK$9,179,000 (2004: HK$98,019,000) 
and 827,640,000 (2004: 827,640,000) ordinary shares in issue during 
the period.

There is no potential dilutive effect on the equity component of the 
convertible note.