SENYUAN INT'L<03333> - Results Announcement
Senyuan International Holdings Limited announced on 24/04/2006:
(stock code: 03333 )
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 3 : 374,128 298,971
Profit/(Loss) from Operations : 60,751 50,474
Finance cost : (4,925) (3,496)
Share of Profit/(Loss) of
Associates : 0 509
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 49,492 42,304
% Change over Last Period : +17 %
EPS/(LPS)-Basic (in dollars) : 0.185 0.184
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 49,492 42,304
Final Dividend : RMB0.0568 0
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 25/05/2006 to 29/05/2006 bdi.
Payable Date : 15/06/2006
B/C Dates for Annual
General Meeting : 25/05/2006 to 29/05/2006 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
NOTES
1. BASIS OF PREPARATION
These financial statements have been prepared in accordance with Hong Kong Financial
Reporting standards ("HKFRSs") (which also include Hong Kong Accounting Standards
("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public
Accountants, accounting principles generally accepted in Hong Kong and the disclosure
requirements of the Hong Kong Companies Ordinance.They have been prepared under the
historical cost convention. These financial statements are presented in Renminbi
("RMB") and all values are rounded to the nearest thousand (RMB'000) except when
otherwise indicated.
Basis of consolidation
The consolidated financial statements, which is prepared on the audited financial
statements and, where appropriate, management accounts of the companies now comprising
the Group, have been prepared by adopting a uniting of interests method of accounting as a
result of the Reorganisation (as defined below). Under this method, the Company has been
treated as the holding company of the subsidiaries from 1 January 2004 rather than from the
date of acquisition of the subsidiaries.The reorganisation of our Group in preparation
for the listing of the Shares on the Stock Exchange (the"Reorganisation") has been
reflected in the financial statements by regarding the Group comprising the Company and
its subsidiaries as a continuing entity. Accordingly, the consolidated financial
statements of the Group have been prepared as if the group structure as at 31 May 2005 had
been in existence for the period from 1 January 2004 to 31 May 2005, or from the respective
dates of their incorporation where this is a shorter period. All significant
intercompany transactions and balances within the Group are eliminated on
consolidation.
Minority interests represent the interests of outside shareholders in the results and
net assets of the Company's subsidiaries.
2 IMPACT OF NEW AND REVISED HONG KONG FINANCIAL REPORTING STANDARDS
The following new and revised HKFRSs affect the Group and are adopted for the first time for
the current year's 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 12 Income Taxes
HKAS 14 Segment Reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 20 Accounting for Government Grants and Disclosure of Government Assistance
HKAS 23 Borrowing Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial Statements
HKAS 28 Investments in Associates
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and Measurement
(Amendment)
HKAS 39 Transition and Initial Recognition of Financial Assets and Financial
Liabilities Amendment
HKFRS3 Business Combinations
The adoption of HKASs 2, 7, 8, 10, 12, 14, 16, 18, 19, 20, 23, 27, 28, 33, 36, 37, 38, 39
(Amendment) and HKFRS3 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. In addition, in prior periods, the Group's share of tax
attributable to associates was presented as a component of the Group's total tax
charge/(credit) in the consolidated income statement. Upon the adoption of HKAS 1, the
Group's share of the post-acquisition results of associates is presented net of the
Group's share of tax attributable to associates.
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 17 - Leases
In prior years, leasehold land and buildings held for own use were stated at cost.
Upon the adoption of HKAS 17, the Group's leasehold interest in land and buildings is
separated into leasehold land and leasehold buildings.The Group's leasehold land is classified
as an operating lease, because the title of the land is not expected to pass to the Group by
the end of the lease term, and is reclassified from property, plant and equipment to
prepaid land lease payments, while leasehold buildings continue to be classified as part
of property, plant and equipment. Prepaid land lease payments under operating leases are
initially stated at cost and subsequently amortised on the straight-line basis over the
lease term.When the lease payments cannot be allocated reliably between the land and
buildings elements, the entire lease payments are included in the cost of the land and
buildings as a finance lease in property, plant and equipment.
This change in accounting policy has had no effect on the consolidated income statement
and retained profits. The comparative amounts for the year ended 31 December 2004 in the
consolidated balance sheet have been restated to reflect the reclassification of the
leasehold land.
(b) HKAS 32 and HKAS 39 - Financial Instruments
Equity securities
In prior years, the Group classified its investments in equity securities as long term
investments, which were held for non-trading purposes and were stated at cost less any impairment. Upon
the adoption of HKAS 39, these securities held by the Group at 1 January 2005 in the amount of
RMB600,000 are designated as an available-for-sale investment under the transitional
provisions of HKAS 39 and are stated at cost less any impairment.
The adoption of HKAS 39 has not resulted in any change in the measurement of these equity
securities. Comparative amounts have been reclassified for presentation purposes.
3 REVENUE, OTHER INCOME AND GAINS
Revenue, which is also the Group's turnover mainly, represents the net invoiced value of
goods sold, after allowances for returns and trade discounts during the year.
An analysis of revenue, other income and gains is as follows:
2005 2004
RMB'000 RMB'000
Revenue
Sale of goods 374,070 297,799
Rendering of services 58 1,172
374,128 298,971
Other income
Bank interest income 414 68
Government grants and subsidies 482 83
Sale of scraps 840 926
Others 2 35
1,738 1,112
Gains
Gain on disposal of items of property, plant and
equipment 352
2,090 1,112
4. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT
The calculation of basic earnings per share amounts is based on the net profit for the year
attributable to ordinary equity holders of the parent and the weighted average number of
ordinary shares in issue during the year, as adjusted to reflect public offering and
placing of shares during the year, on the assumption that 228,750,000 shares in issue
immediately prior to issue of the Company's shares to the public had been in issue on 1
January 2004.
The calculation of basic earnings per share is based on:
2005 2004
RMB'000 RMB'000
Earnings
Net profit attributable to ordinary equity holders of the parent,
used in the basic earnings per share calculation 49,492 42,134
Number of shares
2005 2004
Shares
Weighted average number of ordinary shares in issue during
the year used in the basic earnings per share calculation 266,875,000 228,750,000
A diluted earnings per share amount for the year ended 31 December 2005 has not been
disclosed as no diluting events existed during the year.
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