CHINA PARADISE<00503> - Results Announcement
China Paradise Electronics Retail Limited announced on 21/04/2006:
(stock code: 00503 )
Year end date: 31/12/2005
Currency: RMB
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 : 12,246,168 8,266,956
Profit/(Loss) from Operations : 358,242 261,112
Finance cost : (8,306) (5,345)
Share of Profit/(Loss) of
Associates : N/A 1,476
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 289,474 185,650
% Change over Last Period : +55.9 %
EPS/(LPS)-Basic (in dollars) : 0.17 0.12
-Diluted (in dollars) : 0.16 0.12
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 289,474 185,650
Final Dividend : HKD0.026 N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 24/05/2006 to 26/05/2006 bdi.
Payable Date : 12/06/2006
B/C Dates for Annual
General Meeting : 24/05/2006 to 26/05/2006 bdi.
Other Distribution for : Special Dividend of HKD0.013
Current Period
B/C Dates for Other
Distribution : 24/05/2006 to 26/05/2006 bdi.
Remarks:
1. Basis of presentation
The Company was listed on the Main Board of The Stock Exchange of Hong
Kong Limited (the "Stock Exchange") on 14 October 2005. The consolidated
financial statements have been prepared on a continuing basis as if the
acquisition of the controlling interest in Yongle (China) Electronics
Retail Co., Ltd. (formerly known as Shanghai Yongle Electronics Retail Co
., Ltd.)("Yongle (China)") by the Company via Paradise Hong Kong II had
been completed as at the beginning of the financial years presented
because the acquisition of Yongle (China) by the Company should be
regarded as a business combination under common control as the Company and
Yongle (China) are ultimately controlled by the same parties before and
after the Reorganisation. Therefore, the consolidated financial
statements include the Group's financial position, results of operations
and cash flows as if Yongle (China) had been a subsidiary of the Group
since the beginning of the financial years presented, to the extent of the
interests in Yongle (China) held by the Mr. Chen Xiao, Ms. Shu Wei, Mr.
Liu Hui and Mr. Yuan Yashi (collectively referred to as the "Key
Management") and a trust, of which Mr. Chen Xiao was the trustee, over the
periods up to the date of acquisition of a 90% interest in Yongle (China)
by the Company via Paradise Hong Kong II, excluding the 10% interest in
Yongle (China) directly held by the Key Management upon completion of the
Reorganisation which is accounted for as part of the minority interests
since the beginning of the financial years presented.
Except that the results of Yongle (China) are presented on a merger basis
as described in the preceding paragraph, the results of all subsidiaries
and jointly-controlled entities historically acquired or disposed of by
Yongle (China) are consolidated from or to their effective dates of
acquisition or disposal.
In the opinion of the directors, the financial statements of the Group,
presented on the above basis, present fairly the results, cash flows and
the state of affairs of the Group as a whole.
1.1 Basis of preparation
The consolidated financial statements have been prepared in accordance
with International Financial Reporting Standards ("IFRSs"), which
comprises standards and interpretations approved by the International
Accounting Standards Board (the "IASB"), and International Accounting
Standards and Standing Interpretations Committee interpretations approved
by the International Accounting Standards Committee that remain in effect,
except for the following standards that have been early adopted since the
beginning of the financial years presented:
. IFRS 1 (amended in 2004), First-Time Adoption of International
Financial Reporting Standards;
. IFRS 2, Share-Based Payment;
IFRS 3, Business Combinations;
. IFRS 5, Non-current Assets Held for Sale and Discontinued
Operations;
. IAS 1 (amended in 2004), Presentation of Financial Statements;
. IAS 10 (amended in 2004), Events after the Balance Sheet Date;
. IAS 12 (amended in 2004), Income Taxes;
. IAS 14 (amended in 2004), Segment Reporting;
. IAS 16 (amended in 2004), Property, Plant and Equipment;
. IAS 17 (amended in 2004), Leases;
. IAS 18 (amended in 2004), Revenue;
. IAS 19 (amended in 2004), Employee Benefits;
. IAS 27 (amended in 2004), Consolidated and Separate Financial
Statements;
. IAS 28 (amended in 2004), Investments in Associates;
. IAS 31 (amended in 2004), Interests in Joint Ventures;
. IAS 32 (amended in 2004), Financial Instruments: Disclosure and
Presentation;
. IAS 33 (amended in 2004), Earnings per Share;
. IAS 36 (amended in 2004), Impairment of Assets;
. IAS 37 (amended in 2004), Provisions, Contingent Liabilities and
Contingent Assets;
. IAS 38 (amended 2004), Intangible Assets; and
. IAS 39 (amended 2004), Financial Instruments: Recognition and
Measurement.
The consolidated financial statements have been prepared on a historical
cost basis and presented in Renminbi and all values are rounded to the
nearest thousand except when otherwise indicated.
1.2 Basis of consolidation
The consolidated financial statements comprise the financial statements of
the companies comprising the Group. Except that the results of Yongle
(China) were presented on a merger basis as described in note 1, the
results of all subsidiaries and jointly-controlled entities historically
acquired or disposed of by Yongle (China) are consolidated from or to
their effective dates of acquisition or disposal.
All material intra-group transactions and balances, and any unrealised
gains arising from intra-group transactions, have been eliminated on
consolidation.
Minority interests at balance sheet date, being the portion of the net
assets of subsidiaries attributable to equity interests that are not owned
by the Group, whether directly or indirectly through subsidiaries, are
presented in the consolidated balance sheet within equity, separately from
the parent shareholders' equity. Minority interests in the results of the
Group are also separately disclosed in the consolidated income statement.
2. Impact of issued but not yet effective IFRSs and IFRIC
Interpretations
The Group has not applied the following IFRSs and IFRIC Interpretations
that have been issued but are not yet effective:
IFRS 6 Exploration for and Evaluation of Mineral Resources
This Standard does not apply to the activities of the Group.
IFRIC Interpretation 5 Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds
This Interpretation is required to be applied for annual periods beginning
on or after 1 January 2006, but is not expected to be relevant for
activities of the Group.
The Group expects that adoption of the pronouncements listed above will
have no impact on the Group's financial statements in the period of
initial application.
3. Earnings per share attributable to ordinary equity holders of the
Company
Basic earnings per share
The calculation of basic earnings per share amounts for the year ended 31
December 2005 is based on the net profit for the year attributable to
ordinary equity holders of the Company of RMB289,474,000, and the weighted
average number of ordinary shares in issue during the year of 1,678,047,
208 shares on the assumption that 1,544,222,000 shares, representing the
number of the shares of the Company outstanding immediately before the
offering of the Company's shares in relation to the listing of the Company
on the Stock Exchange (the "Global Offering"), assuming that none of the
Company's share option will be exercised before the Global Offering, had
been in issue throughout the year ended 31 December 2005, adjusted for new
issue of 455,778,000 shares upon the Global Offering and 99,354,693 shares
upon the exercise of the Financial Investors' Option by the Financial
Investors on 14 October 2005 and 68,366,000 shares under over-allotment
arrangement in connection with the Global Offering on 20 October 2005.
The calculation of basic earnings per share amounts for the year ended 31
December 2004 is based on the net profit for the year attributable to
ordinary equity holders of the Company of approximately RMB185,650,000,
and the number of ordinary shares in issue during 2004 on the assumption
that 1,544,222,000 shares issued as at 14 October 2004, assuming that none
of the Company's share option will be exercised before the Global
Offering, had been in issue throughout the year ended 31 December 2004.
Diluted earnings per share
The calculation of diluted earnings per share amounts is based on the net
profit for the year attributable to the ordinary equity holders of the
Company, adjusted to reflect the outstanding share options. The weighted
average number of ordinary shares used in the calculation is the ordinary
shares in issue during the year, as used in the basic earnings per share
calculation and the weighted average number of ordinary shares assumed to
have been issued at no consideration on the deemed exercise or conversion
of all dilutive potential ordinary shares into ordinary shares.
The calculations of basic and diluted earnings per share are based on:
2005 2004
RMB'000 RMB'000
Earnings
Net profit attributable to ordinary
equity holders of the Company 289,474 185,650
========== =========
Number of shares
2005 2004
'000 '000
Shares
Weighted average number of ordinary
shares in issue during the year
used in the basic earnings
per share calculation 1,678,047 1,544,222
Effect of dilution due to share
options - weighted average number
of ordinary shares 142,598 29,737
---------- ----------
1,820,645 1,573,959
========== ==========
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