CHINA TING<03398> - Results Announcement (Summary) (Revised)
China Ting Group Holdings Limited announced on 11/04/2006:
(stock code: 03398 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 1,894,835 1,401,465
Profit/(Loss) from Operations : 462,748 243,154
Finance cost : (8,951) (10,191)
Share of Profit/(Loss) of
Associates : 9,023 10,391
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 380,997 192,803
% Change over Last Period : +97.6 %
EPS/(LPS)-Basic (in dollars) : 0.2515 0.1294
-Diluted (in dollars) : 0.2513 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 380,997 192,803
Final Dividend : $0.046 N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 24/05/2006 to 30/05/2006 bdi.
Payable Date : 20/06/2006
B/C Dates for Annual
General Meeting : 24/05/2006 to 30/05/2006 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. China Ting Group Holdings Limited (the "Company") was incorporated
in the Cayman Islands on 31 May 2005 as an exempted company with limited
liability under the Companies Law (Cap. 22, Law 3 of 1961, as combined and
revised) of the Cayman Islands. The address of its registered office is
Century Yard, Cricket Square Hutchins Drive, P.O. Box 2681 GT, George
Town, Grand Cayman, British West Indies.
2. Reorganisation
Pursuant to a group reorganisation, which was completed on 18 November
2005 (the "Reorganisation"), the Company became the holding company of the
subsidiaries now comprising the Group. The shares of the Company were
listed on the Main Board of The Stock Exchange of Hong Kong Limited on 15
December 2005.
The Reorganisation has been reflected in the financial statements by
regarding the Group now comprising the company and its subsidiaries as a
continuing entity. Accordingly, the financial statements for the year
ended 31 December 2004 have been prepared using the merger basis of
accounting and the consolidated results include the results of the
subsidiaries comprising the Group as if the current structure had been in
existence throughout the period presented.
3. Basis of preparation
The consolidated financial statements of China Ting Group Holdings Limited
have been prepared in accordance with Hong Kong Financial Reporting
Standards ("HKFRS").
The preparation of consolidated financial statements in conformity with
HKFRS requires the use of certain critical accounting estimates. It also
requires management to exercise its judgement in the process of applying
the Company's accounting policies.
The HKICPA has issued a number of new/revised HKFRSs that are effective
for accounting periods commencing on or after 1 January 2006. The Group
has started considering the potential impact of these HKFRSs. Based on
the preliminary assessment, the Group believes that the adoption of these
HKFRSs, if applicable, will not result in substantial changes to the
Group's accounting policies. The Group has not early adopted these new/
revised HKFRSs, if applicable, in the financial statements for the year
ended 31 December 2005, as follows:
HKAS 1 (Amendment) First-time Adoption of Hong Kong Financial
Reporting Standards - Capital disclosure1
HKAS 19 (Amendment) Actuarial Gains and Losses, Group plan and
Disclosures2
HKAS 21 (Amendment) Net Investment in a Foreign Operation2
HKAS 39 (Amendment) Cash Flow Hedge Accounting of Forecast Intragroup
Transactions2
HKAS 39 (Amendment) The Fair Value Option2
HKAS 39 and HKFRS 4 (Amendment) Financial Guarantee
Contracts2
HKFRS 6 Exploration for and Evaluation of Mineral Resources2
HKFRS 7 Financial Instruments: Disclosures1
HKFRS-int 3 Emission Rights2
HKFRS-int 4 Determining whether an Arrangement Contains a Lease2
HKFRS-int 5 Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds2
HK(IFRIC)-Int 6 Liabilities arising from Participating in a Specific
Market - Waste Electrical and Electronic Equipment3
1 : Effective for accounting periods commencing on or after 1
January 2007.
2 : Effective for accounting periods commencing on or after 1
January 2006.
3 : Effective for accounting periods commencing on or after 1
December 2005.
4. Reporting segment - business segments
As at and for the year ended 31 December 2005
The segment results for the year ended 31 December 2005 and other segment
items included in the consolidated income statement are as follows:
OEM Retailing of
garment branded fashion
sales apparel Total
HK$'000 HK$'000 HK$'000
Gross segment sales 1,730,322 172,783 1,903,105
Elimination of inter-segment
sales (8,270) - (8,270)
---------- ---------- ----------
Turnover 1,722,052 172,783 1,894,835
Other income 10,762 151 10,913
---------- ---------- ----------
1,732,814 172,934 1,905,748
---------- ---------- ----------
Segment results 432,577 14,265 446,842
Unallocated gains 15,906
----------
Operating profit 462,748
Finance costs (8,951) - (8,951)
Share of profit of associates 9,023 - 9,023
----------
Profit before income tax 462,820
Income tax expense (72,715)
----------
Profit for the year 390,105
==========
Other segment items included
in the income statement are
as follows:
Depreciation charge 23,531 3,075 26,606
Amortisation of leasehold land
and land use rights 1,061 - 1,061
Provision for impairment of
receivables 3,069 - 3,069
Bad debts written off 78 - 78
Inventory write-down 55 17,047 17,102
As at and for the year ended 31 December 2004
The segment results for the year ended 31 December 2004 and other segment
items included in the consolidated income statement are as follows:
OEM Retailing of
garment branded fashion
sales apparel Total
HK$'000 HK$'000 HK$'000
Gross segment sales 1,253,113 156,953 1,410,066
Elimination of inter-segment
sales (8,601) - (8,601)
---------- ---------- ----------
Turnover 1,244,512 156,953 1,401,465
Other income 4,787 1,718 6,505
---------- ---------- ----------
1,249,299 158,671 1,407,970
---------- ---------- ----------
Segment results 175,065 41,452 216,517
Unallocated gains 26,637
----------
Operating profit 243,154
Finance costs (5,615) (4,576) (10,191)
Share of profit of associates 10,391 - 10,391
----------
Profit before income tax 243,354
Income tax expense (30,186)
----------
Profit for the year 213,168
==========
Other segment items included in the income statement are as follows:
Depreciation charge 22,996 1,885 24,881
Amortisation of leasehold
land and land use rights 846 6 852
Provision for impairment
of receivables - 633 633
Bad debts written off 8,320 - 8,320
Inventory write-down - 1,361 1,361
The Group primarily operates in Hong Kong and the PRC. Sales are made to
overseas customers as well as customers in the PRC.
The Group's sales are mainly made to the customers located in the
following geographical areas:
2005 2004
HK$'000 HK$'000
North America 1,547,703 1,136,335
European Union 84,427 41,726
The PRC (including Hong Kong) 214,419 190,682
Other countries 48,286 32,722
---------- ----------
1,894,835 1,401,465
========== ==========
5. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable
to equity holders of the Company by the weighted average number of
ordinary shares in issue during the year.
2005 2004
HK$'000 HK$'000
Profit attributable to equity holders
of the Company 380,997 192,803
========= =========
Weighted average number of ordinary
shares in issue (thousands) 1,514,658 1,490,000
========== ==========
Basic earnings per share
(HK cents per share) 25.15 cents 12.94 cents
============ ============
Diluted earnings per share is calculated adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The Company has one category of dilutive
potential ordinary shares: share options. For the share options a
calculation is done to determine the number of shares that could have been
acquired at fair value (determined as the average annual market share
price of the Company's shares) based on the monetary value of the
subscription rights attached to outstanding share options. The number of
shares calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share options.
2005
HK$'000
Profit attributable to equity holders of
the Company and used to determine diluted
earnings per share 380,997
----------
Weighted average number of ordinary shares
in issue (thousands) 1,514,658
Adjustments for - share options (thousands) 1,147
-----------
Weighted average number of ordinary shares
for diluted earnings per share (thousands) 1,515,805
-----------
Diluted earnings per share (HK per share) 25.13 cents
============
No disclosure of diluted earnings per share for the year ended 31 December
2004 has been made as there were no potential dilutive ordinary shares
outstanding during the year.
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