PERFECTECH INTL<00765> - Results Announcement
Perfectech International Holdings Limited announced on 22/09/2005:
(stock code: 00765 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
Turnover : 197,567 194,262
Profit/(Loss) from Operations : (4,858) 9,366
Finance cost : (429) (606)
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 : (5,097) 7,155
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0166) 0.0236
-Diluted (in dollars) : (0.0166) 0.0236
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (5,097) 7,155
Interim Dividend : 0.5 cent 1 cent
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 25/10/2005 to 26/10/2005 bdi.
Payable Date : 03/11/2005
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 AND SUMMARY OF PRINCIPAL ACCOUNTING POLICIES
The unaudited condensed consolidated interim financial statements are
prepared in accordance with the applicable disclosure requirements of
Appendix 16 of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited ("Listing Rules") and with Hong Kong
Accounting Standard 34 (HKAS 34) Interim Financial Reporting, issued by
the Hong Kong Institute of Certified Public Accountants.
The condensed consolidated interim financial statements have been prepared
on the historical cost basis except for certain properties and financial
instruments, which are measured at fair values or revalued amounts, as
appropriate.
The accounting policies adopted are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended
31st December, 2004 except as described below:
In the current period, the Group has applied, for the first time, a number
of new Hong Kong Financial Reporting Standards (HKFRSs), Hong Kong
Accounting Standards (HKASs) and Interpretations (hereinafter collectively
referred to as "new HKFRSs") issued by the Hong Kong Institute of
Certified Public Accountants that are effective for accounting periods
beginning on or after 1 January 2005. The application of the new HKFRSs
has resulted in a change in the presentation of the income statement,
balance sheet and the statement of changes in equity. In particular, the
presentation of minority interests has been changed.
The adoption of the new HKFRSs has resulted in changes to the Group's
accounting policies in the following areas that have an effect on how the
results for the current or prior accounting periods are prepared and
presented:
Business Combinations
In the current period, the Group has applied HKFRS 3, Business
Combinations, which is effective for business combinations for which the
agreement date is on or after 1 January 2005. The principal effects of the
application of HKFRS 3 to the Group are summarised below:
Goodwill
In previous periods, goodwill arising on acquisitions prior to 1 January
2001 was held in reserves, and goodwill arising on acquisitions after 1
January 2001 was capitalised and amortised over its estimated useful life.
The Group has applied the relevant transitional provisions in HKFRS 3.
With respect to goodwill previously capitalised on the balance sheet, the
Group has discontinued amortising such goodwill from 1 January 2005
onwards and goodwill will be tested for impairment at least annually/in
the financial year in which the acquisition takes place.
Goodwill arising on acquisitions after 1 January 2005 is measured at cost
less accumulated impairment losses (if any) after initial recognition. As
a result of this change in accounting policy, no amortisation of goodwill
has been charged in the current period. Comparative figures for 2004 have
not been restated.
Share-based Payments
In the current period, the Group has applied HKFRS 2 Share-based Payment
which requires an expense to be recognised where the Group buys goods or
obtains services in exchange for shares or rights over shares ("equity-
settled transactions"), or in exchange for other assets equivalent in
value to a given number of shares or rights over shares ("cash-settled
transactions"). The principal impact of HKFRS 2 on the Group is in
relation to expensing of the fair value of directors' and employees' share
options of the Company determined at the date of grant of the share
options over the vesting period. Prior to the application of HKFRS 2, the
Group did not recognise the financial effect of these share options until
they were exercised. The Group has applied HKFRS 2 to share options
granted on or after 1 January 2005.
In relation to share options granted before 1 January 2005, the Group has
not applied HKFRS 2 to share options granted on or before 7 November 2002
and share options that were granted after 7 November 2002 and had vested
before 1 January 2005 in accordance with the relevant transitional
provisions.
Financial Instruments
In the current period, the Group has applied HKAS 32 Financial Instruments
: Disclosure and Presentation and HKAS 39 Financial Instruments:
Recognition and Measurement. HKAS 32 requires retrospective application.
HKAS 39, which is effective for annual periods beginning on or after 1
January 2005, generally does not permit to recognise, derecognise or
measure financial assets and liabilities on a retrospective basis. The
principal effects resulting from the implementation of HKAS 32 and HKAS 39
are summarised below:
Classification and measurement of financial assets and financial
liabilities
The Group has applied the relevant transitional provisions in HKAS 39 with
respect to classification and measurement of financial assets and
financial liabilities that are within the scope of HKAS 39.
By 31 December 2004, the Group classified and measured its debt and equity
securities in accordance with the benchmark treatment of Statement of
Standard Accounting Practice 24 (SSAP 24). Under SSAP 24, investments in
debt or equity securities are classified as "investment securities", "
other investments" or "held-to-maturity investments" as appropriate. "
Investment securities" are carried at cost less impairment losses (if any)
while "other investments" are measured at fair value, with unrealised
gains or losses included in the profit or loss. Held-to-maturity
investments are carried at amortised cost less impairment losses (if any).
From 1 January 2005 onwards, the Group classifies and measures its debt
and equity securities in accordance with HKAS 39. Under HKAS 39, financial
assets are classified as "financial assets at fair value through profit or
loss", "available-for-sale financial assets", "loans and receivables", or
"held-to-maturity financial assets". The classification depends on the
purpose for which the assets are acquired. "Financial assets at fair value
through profit or loss" and "available-for-sale financial assets" are
carried at fair value, with changes in fair values recognised in profit or
loss and equity respectively. "Loans and receivables" and "held-to-
maturity financial assets" are measured at amortised cost using the
effective interest method.
On 1 January 2005, the Group classified and measured its debt and equity
securities in accordance with the requirements of HKAS 39. No adjustment
to retained earnings at 1st January, 2005 was made.
2. (LOSS) EARNINGS PER SHARE
The calculation of the basic and diluted (loss) earnings per share is
based on the loss for the period of approximately HK$5,097,000 (2004 :
profit of HK$7,155,000) and the following data:
(Unaudited)
For the six months
ended 30th June,
2005 2004
Weighted average number of ordinary
shares for the purposes of basic
earnings per share 306,621,497 303,012,596
Effect of dilutive potential
ordinary shares:
Share options 1,072,381 523,381
------------- --------------
Weighted average number of ordinary
shares for the purposes of diluted
earnings per share 307,693,878 303,535,977
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