SOUTH CHINA IND<00413> - Results Announcement
South China Industries Limited announced on 19/04/2006:
(stock code: 00413 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 3,971,834 3,470,171
Profit/(Loss) from Operations : 233,959 144,064
Finance cost : (18,108) (9,675)
Share of Profit/(Loss) of
Associates : 45,980 (10,611)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 200,772 100,896
% Change over Last Period : +99 %
EPS/(LPS)-Basic (in dollars) : 0.38 0.19
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 200,772 100,896
Final Dividend : NIL 5.7 cents
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final 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. Earnings per share attributable to ordinary equity holders of the
parent
The calculation of the basic earnings per share amounts is based on the
net profit for the year attributable to ordinary equity holders of the
parent of approximately HK$200,772,000 (2004: HK$100,896,000) and 530,335
,000 (2004: 530,335,000) ordinary shares in issue during the year.
Diluted earnings per share amount for the year ended 31 December 2005 and
2004 have not been disclosed as no diluting events existed for these
years.
2. Impact of new Hong Kong Financial Reporting Standards ("HKFRSs")
and Hong Kong Accounting Standards ("HKASs")
The Hong Kong Institute of Certified Public Accountants (the "HKICPA") has
issued a number of new HKFRSs, and HKASs and Interpretations, which are
generally effective for accounting periods beginning on or after 1 January
2005. The Group has adopted the following HKFRSs and HKASs which are
pertinent to its operations and relevant to these financial statements.
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 11 Construction Contracts
HKAS 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 20 Accounting for Government Grants and Disclosure of Government
Assistance
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 28 Investment in Associates
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKAS 39 Amendment Transition and Initial Recognition of Financial
Assets and Financial Liabilities
HKFRS 2 Share-based Payment
HKFRS 5 Non-current Assets Held for Sale and Discontinued Operations
HK(SIC)-Int 21 Income Taxes - Recovery of Revalued Non-depreciable Assets
HK-Int 4 Leases - Determination of the Length of Lease Term in
respect of Hong Kong Land Leases
In prior year, the Group had early adopted HKAS 17 "Leases", HKAS 36 "
Impairment of assets" and HKAS 40 "Investment property" and HKFRS 3 "
Business combinations" in the consolidated financial statements for year
ended 31 December 2004.
The adoption of HKASs 2, 7, 8, 10, 11, 12, 14, 16, 18, 19, 20, 21, 23, 27,
28, 33, 37, 38 and HKFRS 2, 5 and HK-Int 4 has had no material impact on
the accounting policies of the Group and the Company and the methods of
computation in the Group's and the Company's financial statements.
HKAS 1 has affected the presentation of minority interests on the face of
the consolidated balance sheet, consolidated income statement,
consolidated statement of changes in equity and other disclosures.
HKAS 24 has expanded the definition of related parties and affected the
Group's related party disclosures.
The impact of adopting the other HKFRSs is summarised as follows:
(a) HKAS 32 and HKAS 39 - Financial Instruments
In prior years, the Group classified its investments in equity securities
as non-trading securities, which were held for non-trading purposes and
were stated at their fair values on an individual basis with gains and
losses recognised as movements in the investment revaluation reserve. Upon
the adoption of HKAS 39, these securities held by the Group at 1 January
2005 in the amount of HK$31,747,000 are designated as available-for-sale
investments under the transitional provisions of HKAS 39 and accordingly
are stated at fair value with gains or losses being recognised as a
separate component of equity until subsequent derecognition or impairment.
The adoption of HKAS 39 has not resulted in any change in the measurement
of these equity securities.
(b) HK(SIC)-Int 21 - Income Taxes - Recovery of Revalued Non-
depreciable Assets
In prior periods, deferred tax arising on the revaluation of investment
properties was recognised based on the tax rate that would be applicable
upon the sale of the investment properties.
Upon the adoption of HK(SIC)-Int 21, deferred tax arising on the
revaluation of the Group's investment properties is determined depending
on whether the properties will be recovered through use or through sale.
The Group has determined that its investment properties will be recovered
through use, and accordingly the profits tax rate has been applied to the
calculation of deferred tax.
The effects of the above changes are summarized in note (c) below. The
changes have not resulted in any prior year adjustment.
(c) Summary of the Impact of Changes in Accounting Policies
(i) Effect on the consolidated balance sheet
Effect of adopting
-------------------------------------
At 1 January 2005 HKAS 1# HKASs 32# HK(SIC)-
and 39* Int 21#
Deferred tax
Change in on
classification revaluation of
of equity investment
Effect of Presentation investments properties Total
new policies
(Increase/(decrease))
HK$'000 HK$'000 HK$'000 HK$'000
Assets
Available-for-sale investments
- 31,747 - 31,747
Non-trading securities - (31,747) - (31,747)
-------------
-
=============
Liabilities/equity
Other payables and accruals
(283) - - (283)
Investment revaluation reserve
- 1,884 - 1,884
Available-for-sale investment revaluation reserve
- (1,884) - (1,884)
Minority interests 283 - - 283
------------
-
=============
* Adjustments taken effect prospectively from 1 January 2005
# Adjustments/presentation taken effect retrospectively
Effect of adopting
---------------------------------------
At 31 December 2005 HKAS 1 HKASs 32 HK(SIC)-
and 39 Int 21
Deferred tax
Change in on
classification revaluation of
of equity investment
Effect of Presentation investments properties Total
new policies
(Increase/(decrease))
HK$'000 HK$'000 HK$'000 HK$'000
Assets
Available-for-sale investments
- 11,667 - 11,667
Non-trading securities - (11,667) - (11,667)
--------
-
=============
Liabilities/equity
Deferred tax liabilities - - 11,430 11,430
Investment revaluation reserve
- 535 - 535
Available-for-sale investment revaluation reserve
- (535) - (535)
Retained profits - - (11,430) (11,430)
---------
-
=============
(ii) Effect on the balances of equity at 1 January 2005
Effect of adopting
--------------------------------
HKAS 1 HKAS 39
Classification of Designation of
minority interests available-for
sale investments
Effect of new policies (Increase/(decrease)) Total
HK$'000 HK$'000 HK$'000
Investment revaluation reserve - 1,884 1,884
Available-for-sale investment revaluation reserve
- (1,884) (1,884)
Minority interests 283 - 283
-------
283
=============
The adoption of new and revised HKFRSs has no effect on the balances of
equity at 1 January 2004.
(iii) Effect on the consolidated income statement for the year ended 31
December 2005 and 2004
Effect of adopting
--------------------------------------
HKAS 1 HK(SIC)-Int 21
Effect of new policies Deferred tax on
Share of post-tax revaluation of
profits and losses investment
of associates properties Total
HK$'000 HK$'000 HK$'000
Year ended 31 December 2005
Decrease in share of profits and losses of associates
(28,060) (28,060)
Decrease/(increase) in tax 28,060 (40,344) (12,284)
------------------------------------------
Total increase/(decrease) in profit
- (40,344) (40,344)
============= ============= ==========
Increase/(decrease) in basic earnings per share
- (HK7.6 cents)(HK7.6 cents)
============= ============= =============
Year ended 31 December 2004
Increase in share of profits and losses of associates
552 - 552
Increase in tax (552) - (552)
------------------------------------------
Total increase/(decrease) in profit
- - -
============= ============= ==========
Increase/(decrease) in basic earnings per share
- - -
============ ============= =========
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