CHINA TING<03398> - Results Announcement
China Ting Group Holdings Limited announced on 07/09/2006:
(stock code: 03398 )
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 : 922,792 1,021,479
Profit/(Loss) from Operations : 255,546 295,267
Finance cost : (1,566) (4,233)
Share of Profit/(Loss) of
Associates : 1,340 6,183
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 220,660 240,259
% Change over Last Period : -8.2 %
EPS/(LPS)-Basic (in dollars) : 0.1069 0.1612
-Diluted (in dollars) : 0.1064 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 220,660 240,259
Interim Dividend : $0.064 N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 22/09/2006 to 29/09/2006 bdi.
Payable Date : 09/10/2006
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 accounting policies
This unaudited condensed consolidated financial information ("Interim
Financial Report") of China Ting Group Holdings Limited and its
subsidiaries (the "Group") has been prepared in accordance with Hong Kong
Accounting Standard ("HKAS") 34 "Interim Financial Reporting" and other
relevant Hong Kong Financial Reporting Standards ("HKFRS") issued by the
Hong Kong Institute of Certified Public Accountants (the "HKICPA") as well
as the disclosure requirements of Appendix 16 of the Rules Governing the
Listing of Securities on the Stock Exchange of Hong Kong Limited (the "
Listing Rules"). The Interim Financial Report has not been audited, but
has been reviewed by the Group's audit committee.
This Interim Financial Report should be read in conjunction with the 2005
annual report.
2. Changes in accounting policies
(a) Effect of adopting new HKFRS
The accounting policies and methods of computation used in the preparation
of this Interim Financial Report are consistent with those used in the
annual financial statements for the year ended 31 December 2005 except for
changes in accounting policies made thereafter in adopting certain new
standards, amendments to standards and interpretations which are relevant
to the Group's operations as follows:
HKAS 19 (Amendment) Actuarial Gains and Losses, Group Plan and
Disclosures
HKAS 21 (Amendment) Net Investment in a Foreign Operation
HKAS 39 (Amendment) Cash Flow Hedge Accounting of Forecast Intragroup
Transactions
HKAS 39 (Amendment) The Fair Value Option
HKAS 39 and HKFRS 4 Financial Guarantee Contracts
(Amendment)
HKFRS-Int 4 Determining whether an Arrangement Contains a Lease
HKFRS-Int 5 Rights to Interests rising from Decommissioning,
Restoration and Environmental Rehabilitation funds
HKFRS(IFRIC)-Int 6 Liabilities rising from Participating in a
Specific Market - Waste Electrical and Electronic Equipment
The adoption of the above new/revised HKFRSs, HKASs and interpretations
has no material impact on the Group's results.
The Group has not early adopted any new/revised HKFRSs, HKASs and
interpretations which have been issued on or before 30 June 2006 but are
not effective for the financial year ending 31 December 2006. The Group
is in the process of assessing their impact on the Group's results and
operations.
3. Sales and segment information
(a) Primary reporting segment - business segment
The Group is principally engaged in the manufacture and sale of garments
on an original equipment manufacturing ("OEM") basis and retailing of
branded fashion apparel.
The business segment analysis of the Group's turnover and contribution to
operating results is presented below:
For the six months ended 30 June 2006
(Unaudited)
OEM Retailing of
garment branded fashion
sales apparel Total
HK$'000 HK$'000 HK$'000
Gross segment sales
837,371 88,895 926,266
Elimination of inter-segment sales
(2,383) (1,091) (3,474)
--------------------------------------------------
Turnover
834,988 87,804 922,792
Other income
16,794 79 16,873
--------------------------------------------------
851,782 87,883 939,665
--------------------------------------------------
Segment results
201,802 24,645 226,447
Unallocated gains 29,099
------------------
Operating profit 255,546
Finance costs
(1,026) (540) (1,566)
Share of profit of associates
1,340 - 1,340
------------------
Profit before income tax 255,320
Income tax expense (34,072)
------------------
Profit for the period 221,248
==================
Other segment terms included in the
condensed consolidated income statement are as follows:
Depreciation
10,624 1,060 11,684
Amortisation
1,924 17 1,941
Provision for impairment of receivables
- 154 154
Reversal of provision for inventory
- (3,174) (3,174)
For the six months ended 30 June 2005
(Unaudited)
OEM Retailing of
garment branded fashion
sales apparel Total
HK$'000 HK$'000 HK$'000
Gross segment sales
948,915 82,453 1,031,368
Elimination of inter-segment sales
(9,889) - (9,889)
---------------------------------------------------
Turnover
939,026 82,453 1,021,479
Other income
1,092 72 1,164
---------------------------------------------------
940,118 82,525 1,022,643
---------------------------------------------------
Segment results
287,154 (66) 287,088
Unallocated gain 8,179
-------------------
Operating profit 295,267
Finance costs
(4,012) (221) (4,233)
Share of profit of associates
6,183 - 6,183
-------------------
Profit before income tax 297,217
Income tax expense (48,929)
-------------------
Profit for the period 248,288
===================
Other segment terms included in the
condensed consolidated income statement are as follows:
Depreciation
11,098 960 12,058
Amortisation
2,328 11 2,339
Provision for impairment of receivables
240 1,341 1,581
Provision for inventory
- 21,309 21,309
(b) Secondary reporting segment - geographical segments
The Group primarily operates in Hong Kong and People's Republic of China
(the "PRC"). Sales are made to overseas customers as well as customers in
the PRC.
The Group's sales are mainly made to the customers located in the
following geographical areas:
For the six months ended 30 June
2006 2005
Unaudited Unaudited
HK$'000 HK$'000
North America 721,844 847,404
European Union 34,672 45,823
The PRC (including Hong Kong) 143,846 103,924
Other countries 22,430 24,328
-------------------------
922,792 1,021,479
=========================
4. Earnings per share
The calculation of basic and diluted earnings per share for the six months
period ended 30 June 2006 are based on the profit attributable to equity
holders of the Company for the period of HK$ 220,660,000 (2005: HK$240,
259,000). The basic earnings per share is based on the weighted average of
2,063,756,906 (2005:1,490,000,000) shares in issue during the period.
In determining the weighted average number of ordinary shares in issue for
2005, a total of 1,490,000,000 ordinary shares were deemed to be in issue
since 1 January 2005 after taking into consideration of the effect of the
group reorganisation and capitalisation issue. The 1,490,000,000 ordinary
shares comprised of 100,000,000 shares to be issued pursuant to the group
reorganisation, which was completed on 18 November 2005 and 1,390,000,000
shares to be issued pursuant to the capitalisation issue, which were
issued by the Company on 18 November 2005 at par value to the then
existing shareholders of the Company in proportion to the respective
shareholding by the capitalisation of HK$139,000,000 from the share
premium account.
The diluted earnings per share is based on 2,073,301,916 (2005: N/A)
shares, which is the weighted average number of shares in issue during the
period plus the weighted average number of shares deemed to be issued at
no consideration if all outstanding options had been exercised. No
disclosure of diluted earnings per share for the six months period ended
30 June 2005 has been made as there were no potential dilutive ordinary
shares outstanding.
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