SUNDAY COMM<00866> - Results Announcement
SUNDAY Communications Limited announced on 14/09/2006:
(stock code: 00866 )
Year end date: 31/12/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2006 from 01/01/2005
to 30/06/2006 to 30/06/2005
Note ('000 ) ('000 )
Turnover : 642,197 561,063
Profit/(Loss) from Operations : (200,418) (48,836)
Finance cost : (70,099) (12,430)
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 : (270,517) (61,266)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0905) (0.0205)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (270,517) (61,266)
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 Basis of preparation
The unaudited condensed consolidated financial statements have been
prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "
Interim Financial Reporting" issued by the Hong Kong Institute of
Certified Public Accountants ("HKICPA").
The unaudited condensed consolidated financial statements have been
reviewed by the Company's Audit Committee and, in accordance with
Statement of Auditing Standards 700 "Engagements to review interim
financial reports" issued by the HKICPA, by the Company's auditors.
The preparation of the unaudited condensed consolidated financial
statements in conformity with HKAS 34 requires management to make
judgments, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and
expenses on a year to date basis. Actual results may differ from these
estimates.
The accounting policies and methods of computation used in preparing these
unaudited condensed consolidated financial statements are consistent with
those followed in preparing the Group's annual financial statements for
the year ended December 31, 2005, except for the adoption of the following
new and revised Hong Kong Financial Reporting Standards ("HKFRSs"), HKASs
and Interpretations ("Int") (collectively referred to as "new HKFRSs")
which are effective for accounting periods beginning on or after January
1, 2006:
(i) Amendment to HKAS 19 Employee Benefits - Actuarial Gains and
Losses, Group Plans and Disclosures
(ii) Amendment to HKAS 21 The Effects of Changes in Foreign Exchange
Rates - Net Investment in a Foreign Operation
(iii) Amendment to HKAS 39 Financial Instruments: Recognition and
Measurement - Cash Flow Hedge Accounting of Forecast Intragroup
Transactions and The Fair Value Option
(iv) Amendments to HKAS 39 Financial Instruments: Recognition and
Measurement & HKFRS 4 Insurance Contracts - Financial Guarantee Contracts
(v) HKFRS-Int 4 Determining Whether an Arrangement Contains a Lease
The adoption of these new HKFRSs has no material effect on the Group's
results and financial position for the current or prior periods.
2 Expenses by nature
Six months ended June 30,
2006 2005
HK$'000 HK$'000
(Restated)
Note 5
Amortization expense 65,278 14,611
Cost of inventories sold 109,594 80,902
Depreciation:
Owned fixed assets 161,124 110,651
Leased fixed assets 507 254
Loss on disposals of fixed assets 298 71
Operating lease charges:
Land and buildings, including transmission sites
134,848 109,811
Leased lines 46,487 39,900
3 Loss per share
The calculation of basic loss per share is based on the Group's loss
attributable to equity holders for the period of HK$270,517,000 (2005 (
restated): HK$61,266,000) and the 2,990,000,000 shares (2005: 2,990,000,
000 shares) in issue during the period.
There is no dilutive effect upon exercise of the share options on the loss
per share for the six months ended June 30, 2005 and 2006 since:
(i) the exercise prices for the share options were above the average
fair value of the shares;
(ii) as at June 30, 2006, the Group had no outstanding share options as
all outstanding share options granted by the Company under its share
option scheme adopted on March 1, 2000 had either been cancelled or had
lapsed under the terms of such share option scheme by August 9, 2005,
being one month after the date on which the mandatory unconditional cash
offer made by PCCW Mobile Holding No. 2 Limited, an indirect wholly-owned
subsidiary of PCCW, became unconditional; and
(iii) no share options had been granted under the share option scheme
adopted by the Company on May 22, 2002.
4 (Loss)/profit from operations
The calculations of (loss) / profit from operations for the purpose of the
information required in the Results Announcement Form are based on the
following data:
2006 2005
HK$'000 HK$'000
(Restated)
Note 5
Mobile services 526,185 490,956
Sales of mobile phones and accessories 116,012 70,107
-------------------------
Turnover 642,197 561,063
Cost of services provided (118,679) (92,539)
Cost of inventories sold (109,594) (80,902)
-------------------------
Gross profit 413,924 387,622
Network costs (207,732) (146,079)
Depreciation (161,631) (110,905)
Amortization expense (65,278) (14,611)
Salaries and related costs (70,048) (74,342)
Rent, rates and utilities (28,671) (25,889)
Other operating costs (82,200) (64,943)
--------------------------
(201,636) (49,147)
Interest income 1,218 311
--------------------------
Loss from operations (200,418) (48,836)
==========================
5 Comparative Figures
Certain comparative figures were being restated as the result of changes
in the following accounting policies in 2005 and to conform with the
financial presentation format of the parent company.
These accounting policies are:
(i) Recognition of intangible asset (HKAS 38) - 3G licence and subscriber
acquisition costs
(ii) Recognition of rental deposit and prepaid operating rental expenses
(HKAS 39)
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