EGANA JEWELLERY<00926> - Results Announcement
Egana Jewellery & Pearls Limited announced on 16/02/2006:
(stock code: 00926 )
Year end date: 31/05/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Restated)
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/06/2005 from 01/06/2004
to 30/11/2005 to 30/11/2004
Note ('000 ) ('000 )
Turnover : 433,124 420,668
Profit/(Loss) from Operations : 77,696 60,965
Finance cost : (18,695) (10,511)
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 : 52,578 48,431
% Change over Last Period : +9 %
EPS/(LPS)-Basic (in dollars) : 0.1248 0.1433
-Diluted (in dollars) : 0.1211 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 52,578 48,431
Interim Dividend : 2.5 cents 5.5 cents
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 13/03/2006 to 15/03/2006 bdi.
Payable Date : 29/03/2006
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 and accounting policies
The accounts have been prepared in accordance with accounting principles
generally accepted in Hong Kong and comply with accounting standards
issued by the Hong Kong Institute of Certified Public Accountants ("
HKICPA"). They have been prepared under the historical cost convention as
modified by the revaluation of available-for-sale financial assets,
investments held for trading and certain financial instruments, which are
carried at fair values.
The accounting policies used in the accounts are consistent with those
followed in the preparation of the Group's annual accounts for the year
ended 31st May, 2005 except as described below.
In the current period, the Group has applied, for the first time, a number
of new Hong Kong Financial Reporting Standards ("HKFRSs"), Hong Kong
Accounting Standards ("HKASs") and Interpretations (hereinafter
collectively referred to as the "new HKFRSs") issued by the HKICPA that
are effective for accounting periods beginning on or after 1st January,
2005. The application of the new HKFRSs has resulted in a change in the
presentation of the income statement, balance sheet and the statement of
changes in equity. In particular, the presentation of minority interests
and share of tax of associated companies have been changed under HKAS 1 "
Presentation of Financial Statements" and HKAS 27 "Consolidated and
Separate Financial Statements", respectively. The changes in presentation
have been applied retrospectively.
The adoption of the new HKFRSs has resulted in changes to the Group's
accounting policies in the following areas that have major impacts on how
the results for the current or prior accounting periods are prepared and
presented:
Trademarks and goodwill
Subsequent to 30th November, 2004, the Group decided to early adopt HKFRS
3 "Business Combinations" together with HKAS 36 "Impairment of Assets" and
HKAS 38 "Intangible Assets" in 2005. Since 1st June, 2004, amortisation of
the acquired trademarks and positive goodwill has been discontinued. As a
result, the profit attributable to equity holders of the Company for the
six months ended 30th November, 2004 is increased by approximately HK$3.7
million as compared with that previously disclosed in the previous interim
accounts.
Leasehold land
The adoption of revised HKAS 17 "Leases" has resulted in a change in the
accounting policy relating to the reclassification of leasehold land and
land use rights from fixed assets to operating leases. The up-front
prepayments made for the leasehold land and land use rights are expensed
in the income statement on a straight-line basis over the period of the
lease or where there is impairment, the impairment is expensed in the
income statement. In prior years, the leasehold land was accounted for at
fair value or cost less accumulated depreciation and accumulated
impairment.
All buildings held for own use which are situated on freehold and
leasehold land are presented as part of fixed assets and are stated at
cost less accumulated depreciation, rather than at fair value.
The new accounting policies have been adopted retrospectively, with the
opening balances of retained profits and the comparative information
adjusted for the amounts relating to prior period. As a result, the
opening retained profits as at 1st June, 2005 is increased by
approximately HK$0.5 million.
Financial instruments
In the current period, the Group has applied HKAS 32 "Financial
Instruments: Disclosures and Presentation" and HKAS 39 "Financial
Instruments: Recognition and Measurement". HKAS 32 requires retrospective
application. HKAS 39, which is effective for accounting periods beginning
on or after 1st January, 2005, generally does not permit to recognise,
derecognise or measure financial assets and liabilities on a retrospective
basis. The principal effects resulting from the implementation of HKAS 32
and HKAS 39 are summarised below:
Convertible bonds
HKAS 32 requires an issuer of a compound financial instrument (that
contains both financial liability and equity components) to separate the
compound financial instrument into its liability and equity components. In
subsequent periods, the liability component is carried at amortised cost
using the effective interest method. The principal impact of HKAS 32 on
the Group is in relation to convertible bonds issued by the Company that
contain both liability and equity components. Previously, convertible
bonds were classified as liabilities on the balance sheet. As HKAS 32
requires retrospective application, comparative figures have been
restated.
Minority interests
In prior years, minority interests at the balance sheet date were
presented in the consolidated balance sheet separately from liabilities
and as deduction from net assets. Minority interests in the results of the
Group for the period were also separately presented in the profit and loss
account as a deduction before arriving at the profit attributable to
shareholders.
With effect from 1st June, 2005, in order to comply with HKAS 1 and HKAS
27, minority interests at the balance sheet date are presented in the
consolidated balance sheet within equity, separately from the equity
attributable to equity holders of the Company, and minority interests in
the results of the Group for the period are presented on the face of the
consolidated profit and loss account as an allocation of the total profit
or loss for the period between the minority interests and the equity
holders of the Company.
The presentation of minority interests in the consolidated balance sheet,
profit and loss account and statement of changes in equity for the
comparative period has been restated accordingly.
Gain or loss arising from transactions with minority interests are now
recognised directly in equity.
2. Earnings per share
Basic earnings per share
The basic earnings per share was calculated based on the consolidated
profit attributable to equity holders of the Company for the period of
approximately HK$52,578,000 (2004: HK$48,431,000) and the weighted average
number of ordinary shares of approximately 421,143,000 (2004: 337,969,000)
in issue during the period.
Diluted earnings per share
During the period ended 30th November, 2005, diluted earnings per share
was calculated based on the adjusted consolidated profit attributable to
equity holders of the Company for the period of approximately HK$52,616,
000 and the weighted average number of ordinary shares of approximately
434,432,000 that would be in issue having adjusted for the effects of all
dilutive potential ordinary shares issuable during the period.
During the period ended 30th November, 2004, the Company's share options
exercise price was above the average fair value of one ordinary share,
thus there were no dilutive potential ordinary shares.
Reconciliation
i) A reconciliation of profit attributable to equity holders of the
Company used in calculating the basic and diluted earnings per share was
as follows:
For the period For the period
ended ended
30th November, 30th November,
2005 2004
(restated)
HK$'000 HK$'000
Profit attributable to equity holders
of the Company used in calculating
basic earnings per share 52,578 48,431
Interest savings in respect of
convertible bonds 38 -
--------- --------
Profit attributable to equity holders
of the Company used in calculating
diluted earnings per share 52,616 48,431
========= ========
ii) A reconciliation of the number of ordinary shares for calculation
of basic and diluted earnings per share was as follows:
For the period For the period
ended ended
30th November, 30th November,
2005 2004
Weighted average number of ordinary
shares used in calculating basic
earnings per share 421,143,000 337,969,000
Dilutive potential effect in respect
of convertible bonds 13,289,000 -
------------ ------------
Weighted average number of ordinary
shares used in calculating diluted
earnings per share 434,432,000 337,969,000
============ ============
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