ND PAPER<02689> - Results Announcement
Nine Dragons Paper (Holdings) Limited announced on 27/03/2006:
(stock code: 02689 )
Year end date: 30/06/2006
Currency: RMB
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/07/2005 from 01/07/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 3,774,314 1,780,193
Profit/(Loss) from Operations : 779,979 213,584
Finance cost : (156,424) (62,756)
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 : 560,216 126,616
% Change over Last Period : +342.5 %
EPS/(LPS)-Basic (in dollars) : 0.19 0.04
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 560,216 126,616
Interim Dividend : NIL N/A
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. Group reorganisation, basis of preparation and accounting policies
Nine Dragons Paper (Holdings) Limited (the "Company") was incorporated in
Bermuda on 17 August 2005 under the Companies Act 1981 as an exempt
company with limited liability and became the holding company of the Group
as result of the group reorganization (the "Reorganisation") that
principally comprised the acquisition of Zhang's Enterprises Company
Limited, which holds directly or indirectly, the entire share capital of
Dongguan Nine Dragons Paper Industries Company Limited, Nine Dragons Paper
Industries (Taicang) Company Limited, Dongguan Sea Dragons Paper
Industries Company Limited and Sea Dragons Paper Industries (Taicang)
Company Limited. The Reorganisation became effective on 30 December 2005.
The Reorganisation involved companies under common control, and the Group
resulting from the Reorganisation is regarded as a continuing group.
Accordingly, the Reorganisation has been accounted for on the basis of
merger accounting, under which the condensed consolidated financial
information have been prepared as if the Company had been the holding
company of the other companies comprising the group throughout the period
ended 31 December 2005, rather than from the date on which the
Reorganisation was competed. The comparative figures as at 30 June and
for the period ended 31 December 2004 have been presented on the same
basis.
The unaudited condensed consolidated financial information have been
prepared in accordance with Hong Kong Accounting Standard 34 "Interim
Financial Reporting" issued by the Hong Kong Institute of Certified Public
Accountants.
The accounting policies and methods of computation used in the preparation
of these condensed financial information are consistent with those used in
the prospectus issued by the Company on 20 February 2006 (the "Prospectus
"). Accordingly, this condensed financial information should be read in
conjunction with the Prospectus. "
2. Sales
The Group is principally engaged in the manufacture and sales of paper. As
the products and services provided by the companies now comprising the
Group are all related to the manufacture and sales of paper and subject to
similar business risks, no segment information have been prepared by the
Group.
Turnover recognised during the six months ended 31 December 2005 are as
follows:
Six months ended 31 December
----------------------------
2005 2004
RMB'000 RMB'000
Sales of paper 3,652,542 1,694,976
Sales of unbleached kraft pulp 121,772 85,217
--------------------------
3,774,314 1,780,193
==========================
3. Expenses by nature
Expenses included in cost of goods sold, selling and marketing costs and
administrative expenses are analysed as follows:
Six months ended 31 December
----------------------------
2005 2004
RMB'000 RMB'000
Depreciation of fixed assets (note 3)
159,715 60,084
Add: amount absorbed in opening inventories
11,302 8,312
Less: amount absorbed in closing inventories
(12,974) (2,240)
------------------------
158,043 66,156
Employee benefit expense 145,460 69,179
Changes in finished goods (77,748) (172,952)
Raw materials and consumables used
2,701,434 1,342,056
Transportation 30,207 10,100
Advertising costs 212 122
Operating leases
- Land use rights (note 3) 6,577 911
- Buildings 108 82
4. Earnings per share
- Basic
Basic earnings per share is calculated by dividing the profit attributable
to equity holders of the Company by the weighted average number of
ordinary shares in issue during the period.
Six months ended 31 December
----------------------------
2005 2004
Profit attributable to equity holders of the Company (RMB'000)
560,216 126,616
----------------------------
Number of ordinary shares in issue (shares in thousands)
3,000,000 3,000,000
----------------------------
Basic earnings per share (RMB per share)
0.19 0.04
----------------------------
-Diluted
No diluted earnings per share is presented as there were no potential
dilutive ordinary shares outstanding during the periods.
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