Listed Company Information
 

AEON STORES<00984> - Results Announcement

AEON Stores (Hong Kong) Co. Limited announced on 09/09/2005:
(stock code: 00984 )
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 01/03/2004
                                     to 30/06/2005      to 31/08/2004
                               Note  ('000      )       ('000      )
Turnover                           : 2,605,943          2,242,996         
Profit/(Loss) from Operations      : 50,263             38,022            
Finance cost                       : (4)                (8)               
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       : 37,273             26,711            
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : 0.1434             0.1027            
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 37,273             26,711            
Interim Dividend                   : 5.5 cents          4.0 cents
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Interim Dividend                 : 12/10/2005         to 14/10/2005 bdi.
Payable Date                       : 21/10/2005
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

The condensed financial statements have been prepared in accordance with 
the applicable disclosure requirements of Appendix 16 to the Rules 
Governing the Listing of Securities on The Stock Exchange of Hong Kong 
Limited and with Hong Kong Accounting Standard 34 "Interim financing 
reporting" issued by the Hong Kong Institute of Certified Public 
Accountants ("HKICPA").

During 2004, the Company changed its financial year end date from 28 
February to 31 December. The condensed financial statements for the 
current period cover a six month period from 1 January 2005 to 30 June 
2005. Accordingly, the comparative amount shown for the condensed 
consolidated income statement, condensed consolidated statement of changes 
in equity, condensed consolidated cash flow statement and related notes 
covered a six month period from 1 March 2004 to 31 August 2004 and 
therefore may not be comparable with amounts shown for the current period. 
        

2.      PRINCIPAL ACCOUNTING POLICIES

        The condensed financial statements have been prepared on the 
historical cost basis except for certain financial instruments, which are 
measured at fair values, as appropriate.

        The accounting policies used in the condensed financial statements 
are consistent with those followed in the preparation of the Group's 
annual financial statements for the period from 1 March 2004 to 31 
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, Hong Kong 
Accounting Standards ("HKASs") and Interpretations (hereinafter 
collectively referred to as "new HKFRSs") issued by the HKICPA 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 interest 
has been changed.  The changes in presentation have been applied 
retrospectively.  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.

        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 reclassified/designated its debt and 
equity securities (previously carried at cost less impairment) as 
available-for-sale investments in accordance with the requirements of HKAS 
39.  An adjustment of HK$17,640,000 to the previous carrying amounts of 
these debt and equity securities at 1 January 2005 has been made to the 
Group's retained profits.

The effects of the changes in the accounting policies described above did 
not have other significant effect on the results for the current and prior 
period.

3.      TURNOVER 

The Group is principally engaged in the operation of general merchandise 
stores. No business segment analysis is presented as the management 
considers that the Group has one single business segment. The Group's 
operations are located in Hong Kong and the People's Republic of China ("
PRC"), other than Hong Kong.

An analysis of the Group's revenue and results by geographical segment is 
as follows:

Six months ended 30 June 2005
                                Hong Kong       PRC        Consolidated
                                HK$'000         HK$'000    HK$'000
                                        
TURNOVER                                        
External sales                  1,822,109       783,834    2,605,943
SEGMENT RESULT                                  
Profit (loss) before finance
 costs                             52,578        (2,315)      50,263
Finance costs                          (4)      -                (4)
                                ------------    ---------- ----------           
                        
Profit (loss) before taxation      52,574        (2,315)      50,259
Income tax expenses               (11,285)       (3,293)     (14,578)
                                ------------- -------------- ---------
                                        
Profit (loss) for the period       41,289        (5,608)      35,681
                                   ======       ==========  ==========  

Six months ended 31 August 2004                                 

                                Hong Kong       PRC        Consolidated
                                HK$'000         HK$'000    HK$'000

TURNOVER                                        
External sales                  1,630,587       612,409     2,242,996
SEGMENT RESULT                                  
Profit before finance costs       25,336         12,686        38,022
Finance costs                       (8)         -                  (8)
                                ----------    ----------    -----------
                                        
Profit before taxation          25,328          12,686          38,014
Income tax expenses             (7,138)         (1,984)         (9,122)
                                -----------    ----------- --------------
                                        
Profit for the period           18,190          10,702          28,892
                                ===========     ========        =======         
                        
4.      INCOME TAX EXPENSES      

                                          Six months ended
                                        30.6.2005       31.8.2004
                                        HK$'000         HK$'000
Current tax:
  Hong Kong Profits Tax                 10,095          7,300
PRC income tax                           3,292          1,984
                                        ---------       ------  
                                        13,387          9,284
Deferred tax:                   
  Charge (credit) for the period         1,191          (162)
                                        --------        -------            
                                        14,578          9,122
                                        ========        =======

Hong Kong Profits Tax is calculated at 17.5% (six months ended 31.8.2004: 
17.5%) of the estimated assessable profit for the period.                  
                             
PRC income tax is calculated at 33% of the estimated assessable profits of 
the subsidiaries.

5.      DIVIDENDS

        On 16 June 2005, a dividend of 8.5 HK cents (six months ended 31.
8.2004: 13.0 HK cents) per share amounting to HK$22,100,000 (six months 
ended 31.8.2004: HK$33,800,000) was paid to shareholders as the final 
dividend for the ten months ended 31 December 2004.

The directors have declared that an interim dividend of 5.5 HK cents (six 
months ended 31.8.2004: 4.0 HK cents) per share amounting to HK$14,300,000 
(six months ended 31.8.2004: HK$10,400,000) be paid to the shareholders of 
the Company whose names appear on the Register of Members on 12 October 
2005.  The interim dividend will be paid on or before 21 October 2005.

6.      EARNINGS PER SHARE

The calculation of earnings per share attributable to the equity holders 
of the parent is based on the Group's net profit for the period 
attributable to the equity holders of the parent of HK$37,273,000 (six 
months ended 31.8.2004: HK$26,711,000) and on 260,000,000 (six months 
ended 31.8.2004: 260,000,000) ordinary shares in issue during the period.