SANYUAN GROUP<00140> - Results Announcement
Sanyuan Group Limited announced on 27/09/2006:
(stock code: 00140 )
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 : 73,699 465
Profit/(Loss) from Operations : 3,104 17,202
Finance cost : (2,653) (186)
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 : (115) 17,016
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0006) 0.0178
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (115) 17,016
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.INDEPENDENT REVIEW
The interim results for the six months ended 30 June 2006 are unaudited,
but have been reviewed by RSM Nelson Wheeler in accordance with Statement
of Auditing Standards 700 "Engagements to review interim financial
reports", issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA"), whose modified independent review report is
included in the interim report to be sent to the shareholders of the
Company. The interim results have also been reviewed by the Audit
Committee of the Company.
2.BASIS OF PREPARATION
This unaudited interim financial report has been prepared in accordance
with the Hong Kong Accounting Standard 34 "Interim financial reporting"
issued by the HKICPA and the applicable disclosures required by the Rules
Governing the Listing of Securities (the "Listing Rules") on The Stock
Exchange of Hong Kong Limited (the "Stock Exchange").
The Group had capital deficiency of HK$21,173,000 at 30 June 2006. The
interim financial report has been prepared on a going concern basis, the
validity of which depends upon the continuous financial support by the
Group's ultimate holding company at a level sufficient to finance the
Group's current activities. The Group's ultimate holding company has
confirmed its willingness to finance the Group's current activities.
Moreover, the Group's ultimate holding company has extended the maturity
date of the HK$30,000,000 convertible note issued by the Company to the
Group's ultimate holding company from 7 December 2006 to 7 December 2007.
Should the Group fail to prepare the interim financial report on a going
concern basis, adjustments would have to be made to the interim financial
report to adjust the value of the Group's assets to their recoverable
amounts, to provide for any liabilities which might arise and to
reclassify non-current assets and liabilities as current assets and
liabilities respectively.
3.SIGNIFICANT ACCOUNTING POLICIES
This interim financial report has been prepared in accordance with the
same accounting policies adopted in the 2005 annual financial statements.
4.TURNOVER
Six months ended Six months ended
30 June 2006 30 June 2005
HK$'000 HK$'000
(unaudited) (unaudited)
Sale and distribution of
pharmaceutical products 73,059 -
Laboratory testing services
income 610 465
______ _______
73,669 465
====== =======
5.PROFIT BEFORE TAXATION
This is stated after crediting/(charging):
Six months Six months
ended ended
30 June 2006 30 June 2006
HK$'000 HK$'000
(unaudited) (unaudited)
(a) Other income
Interest income 135 -
Guarantee income earned 1,333 -
____________ _____________
Total other revenue 1,468
Gain on adjustment of the
amortised cost
the convertible note 3,375 -
Others 235 63
____________ _____________
5,078 63
============ =============
(b) Finance cost
Interest on bank overdrafts
and borrowings - (90)
Imputed interest on convertible
note (2,599) -
Interest on other borrowings (94) (96)
____________ _____________
2,653 (186)
============ =============
6.TAXATION
(a) Taxation in the income statement represents:
Six months ended Six months ended
30 June 2006 30 June 2005
HK$'000 HK$'000
(unaudited) (unaudited)
PRC enterprise
income tax 566 -
================ ================
(b) No provision for Hong Kong Profits Tax is required since the Group
has no assessable profit for the six months period ended 30 June 2006 and
2005.
(c) The provision for the PRC enterprise income tax is based on a
statutory tax rate of 33% of the assessable profit of the Group as
determined in accordance with the relevant income tax rules and
regulations of the PRC for the six months ended 30 June 2006. No
provision for PRC enterprise income tax for the six months period ended 30
June 2005 is required since the Group has no assessable profit in this
period.
7.(LOSS)/EARNINGS PER SHARE
The calculation of basic loss per share for the six months ended 30 June
2006 was based on the consolidated loss attributable to equity holders of
the Company of approximately HK$575,000 (Six months ended 30 June 2005:
profit of approximately HK$17,016,000) and the 953,906,963 shares (Six
months ended 30 June 2005: 953,906,963 shares) in issue during the six
months ended 30 June 2006.
Diluted loss per share for the six months ended 30 June 2006 has not been
disclosed as the convertible note outstanding has an anti-dilutive effect
on the basic loss per share during the six months ended 30 June 2006. No
disclosure of diluted earnings per share for the six months ended 30 June
2005 has been made as there were no potential dilutive ordinary shares
outstanding.
AUDITORS' REVIEW CONCLUSION EXTRACTED FROM INDEPENDENT REVIEW REPORT
"Fundamental uncertainty
In arriving at our review conclusion, we have considered the adequacy of
the disclosures made in the interim financial report concerning the basis
of preparation of the interim financial report adopted by the directors.
As explained in note 1 to the interim financial report, the Group had
capital deficiency of HK$21,173,000 at 30 June 2006. The interim financial
report has been prepared on a going concern basis, the validity of which
depends upon the continuous financial support by the Group's ultimate
holding company at a level sufficient to finance the Group's current
activities. The Group's ultimate holding company has confirmed its
willingness to finance the Group's current activities. Moreover, as stated
in note 8 to the interim financial report, the Group's ultimate holding
company has extended the maturity date of the HK$30,000,000 convertible
note from 7 December 2006 to 7 December 2007. The circumstances relating
to this fundamental uncertainty are described in note 1 to the interim
financial report. We consider that the fundamental uncertainty has been
adequately disclosed in the interim financial report.
Review conclusion
On the basis of our review which does not constitute an audit, we are not
aware of any material modifications that should be made to the interim
financial report for the six months ended 30 June 2006."
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