Listed Company Information
 

LEI SHING HONG<00238> - Results Announcement

LEI SHING HONG LIMITED announced on 21/09/2006:
(stock code: 00238 )
Year end date: 31/12/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

                                                        (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                           : 8,907,134          6,493,191         
Profit/(Loss) from Operations      : 440,826            216,308           
Finance cost                       : (95,243)           (70,166)          
Share of Profit/(Loss) of 
  Associates                       : (4,176)            20,682            
Share of Profit/(Loss) of
  Jointly Controlled Entities      : N/A                N/A               
Profit/(Loss) after Tax & MI       : 169,916            111,779           
% Change over Last Period          : +52       %
EPS/(LPS)-Basic (in dollars)       : 0.16               0.106             
         -Diluted (in dollars)     : 0.16               0.105             
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 169,916            111,779           
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:

                               
(A) Earnings Per Share
------------------------
The calculations of basic and diluted earnings per share for the six 
months ended 30 June 2006 and 2005 are
based on:
  
                                   For the six months 
                                     ended 30 June
                                2006            2005
                                (Unaudited)     (Restated)
                                HK$'000         HK$'000
Earnings
----------      
Net profit attributable to ordinary equity holders of the parent for the 
 period, used in the basic and diluted earnings per share calculations           
                                169,916         111,779
                                ===========================


                                    Number of shares
                                ---------------------------
                                   2006            2005
                                (Unaudited)     (Unaudited)
Shares
------- 
Weighted average number of ordinary shares in issue
   during the period used in basic earnings per share
   calculation                 1,060,528,906   1,054,685,520

Effect of dilution - Weighted average number of ordinary shares:
    Warrants                              -        7,916,496
                                ------------------------------
                                1,060,528,906   1,062,602,016
                                ==============================

As the subscription prices of the share options outstanding during the six 
months ended 30 June 2006 and 2005 were higher than the respective average 
market prices of the Company's shares during these periods, there was no 
dilution effect on the basic earnings per share.

In accordance with the terms and conditions of the instrument constituting 
the warrants dated 25 May 2001, the subscription rights attaching to the 
warrants expired on 19 June 2006.


(B) Comparative amounts
------------------------

Due to the adoption of new and revised HKFRSs and the Hong Kong Companies 
(Amendment) Ordinance (the "Amendment Ordinance") during the current 
period, the accounting treatment and presentation of certain items and 
balances in the condensed consolidated interim financial statements have 
been revised to comply with the new requirements.  Accordingly, prior year 
adjustments have been made and certain comparative amounts have been 
reclassified to conform with the current period's presentation and 
accounting treatment.

The impact of adopting the revised HKFRSs and the Amendment Ordinance is 
summarised as follows:

HKAS 27 - Consolidated and Separate Financial Statements and Amendment 
Ordinance

In prior periods, the Group has equity investments in the People's 
Republic of China ("PRC") companies that are controlled by the Group, 
where control is the power to govern the financial and operating policies 
of the PRC companies so as to obtain benefits from the PRC companies' 
activities, where HKAS 27 defines the PRC companies as subsidiaries.  
However, entities can only be regarded as the Group's subsidiaries when 
they meet the definition of subsidiaries under the then Companies 
Ordinance which defined an entity to be a subsidiary of another company if 
that other company controls more than half of an entity's voting power, 
controls the board of directors of an entity or holds more than half of an 
entity's issued share capital.  The Group's equity investments in the PRC 
companies have therefore been recorded as available-for-sale investments, 
which were stated at cost less any impairment losses, in prior periods.

Upon the adoption of the Amendment Ordinance, the PRC companies meet the 
definition of subsidiaries under both HKAS 27 and the Amendment Ordinance 
and consolidation of the PRC companies is required.  The Group is required 
to consolidate the PRC companies retrospectively to the earliest prior 
period presented which were previously recorded as available-for-sale 
investments.