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KAM HING INT'L<02307> - Results Announcement

Kam Hing International Holdings Limited announced on 21/04/2005:
(stock code: 02307 )
Year end date: 31/12/2004
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/01/2004    from 01/01/2003
                                     to 31/12/2004      to 31/12/2003
                               Note  ('000      )       ('000      )
Turnover                           : 1,315,650          1,101,581         
Profit/(Loss) from Operations      : 141,853            125,491           
Finance cost                       : (15,870)           (10,357)          
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       : 105,762            96,356            
% Change over Last Period          : +9.8      %
EPS/(LPS)-Basic (in dollars)       : 0.202              0.201             
         -Diluted (in dollars)     : 0.202              N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 105,762            96,356            
Final Dividend                     : 1.6 cents          N/A
  per Share                                              
(Specify if with other             : N/A                N/A
B/C Dates for 
  Final Dividend                   : 18/05/2005         to 23/05/2005 bdi.
Payable Date                       : 06/06/2005
B/C Dates for Annual         
  General Meeting                  : 23/05/2005   
Other Distribution for             : N/A
  Current Period                     
B/C Dates for Other 
  Distribution                     : N/A   

1.      The listing date and the basis of presentation

The Company's shares have been listed on the Main Board of The Stock 
Exchange of Hong Kong Limited since 23 September 2004.

The consolidated financial statements have been prepared using the merger 
basis of accounting in accordance with Hong Kong Statement of Standard 
Accounting Practice ("SSAP") No. 27, "Accounting for group 
reconstructions", as a result of the Group Reorganisation.  On this basis, 
the Company has been treated as the holding company of its subsidiaries 
for the financial years presented rather than from the date of their 
acquisition.  Accordingly, the consolidated results of the Group for the 
years ended 31 December 2003 and 2004 include the results of the Company 
and its subsidiaries with effect from 1 January 2003 or since their 
respective dates of incorporation, where this is a shorter period.  The 
comparative consolidated balance sheet as at 31 December 2003 has been 
prepared on the basis that the existing Group had been in place at that 

In the opinion of the directors, the consolidated financial statements 
prepared on the above basis present more fairly the results and state of 
affairs of the Group as a whole.

All significant intercompany transactions and balances within the Group 
are eliminated in the preparation of the consolidated financial 

2.      Turnover and revenue

Turnover represents the net invoiced value of goods sold, after allowances 
for returns and trade discounts, and knitting and dyeing services 
rendered.  All significant intra-group transactions have been eliminated 
on consolidation.

An analysis of the Group's turnover and other revenue is as follows:

                                                2004            2003
                                                HK$'000         HK$'000

Sale of goods                                   1,309,780       1,090,190
Fee income from knitting and dyeing services        5,870          11,391
                                                _________       _________
                                                1,315,650       1,101,581
                                                _________       _________

Other revenue
Fee income from freight handling services       5,724           2,027
Interest income                                   253             377
Others                                            652             789
                                                _________       _________
                                                6,629           3,193
                                                _________       _________

                                                1,322,279       1,104,774
                                                =========       ==========      

3.   Profit from operating activities

The Group's profit from operating activities is arrived at after charging 
/ (crediting):

                                                2004            2003
                                                HK$'000         HK$'000

Cost of inventories sold                        998,248         817,230
Cost of services provided                         3,467           5,695
Auditors' remuneration                            1,030             650
Research and development costs                    2,617           1,738
Depreciation                                     34,829          27,375

Staff costs (excluding directors' remuneration):
Wages and salaries                              61,864          47,798
Pension scheme contributions                     1,815           1,507
                                                ________        ________
Total staff costs                               63,679          49,305
                                                ________        ________

Minimum lease payments under operating leases
in respect of land and buildings                        728     1,158
Gain on disposal of fixed assets                    (3,165)       (68)
Provision for inventories                               -       2,739
Bad debts written off                                   418       386
Provision for doubtful debts                          1,744     2,719
Write back of provision for doubtful debts           (1,540)     (344)
Write back of provision for other receivables          (200)     -
Exchange gains, net                                  (4,594)    (1,664)
                                                     ======== ==========

Cost of inventories sold includes HK$60,770,000 for the year ended 31 
December 2004 (2003: HK$51,101,000) in respect of depreciation, staff 
costs and provision for inventories, which are also included in the 
respective total amounts disclosed separately above.

Research and development costs include HK$796,000 for the year ended 31 
December 2004 (2003: HK$614,000) in respect of staff costs and 
depreciation, which are also included in the respective total amounts 
disclosed separately above.

At 31 December 2004, the Group had no forfeited contributions available to 
reduce its contributions to the pension scheme in future years (2003: Nil).

4.   Finance costs
                                                2004            2003
                                                HK$'000         HK$'000

Interest on bank loans, overdrafts and other
loans wholly repayable within five years        13,249          8,403
Interest on finance leases                       2,621          1,954
                                                _______         ______
                                                15,870          10,357
                                                ======          ======

5.      Tax

                                                2004            2003
                                                HK$'000         HK$'000

Current tax - Hong Kong
Charge for the year                             15,072          12,243
Underprovision in respect of prior years           272          -
Current tax - Elsewhere                 
Charge for the year                              5,914           6,513
Underprovision/(overprovision) in respect of
 prior years                                      (967)              5
Deferred tax charge/(credit)                       (70)             17
                                                _______         _______

Total tax charge for the year                   20,221          18,778
                                                _______         _______

6.      Dividend

                                                  2004          2003
                                                HK$'000         HK$'000

Proposed final - HK1.6 cents per ordinary
 share (2003: Nil)                              10,240          -
                                                ========        =======

The proposed final dividend for the year is subject to the approval of the 
Company's shareholders at the forthcoming annual general meeting.

7.      Earnings per share

The calculation of basic earnings per share is based on the net profit 
from ordinary activities attributable to shareholders for the year of HK$
105,762,000 (2003: HK$96,356,000) and the weighted average of 523,716,000 
(2003: 480,000,000) ordinary shares deemed to have been in issue during 
the year. 

The weighted average number of shares used to calculate the basic earnings 
per share for the year ended 31 December 2003 includes the pro forma 
issued share capital of the Company of 480,000,000 shares, comprising (i) 
the 1,000,000 shares of the Company allotted and issued nil paid on 17 
February 2004; (ii) the 1,000,000 shares issued as consideration for the 
acquisition of the entire issued share capital of Joint Result on 24 
August 2004; and (iii) the capitalisation issue of 478,000,000 shares.  
The weighted average number of shares used to calculate the basic earnings 
per share for the year ended 31 December 2004 includes the weighted 
average of 43,716,000 shares issued upon the listing of the Company's 
shares on the Stock Exchange on 23 September 2004 in addition to the 
aforementioned 480,000,000 ordinary shares.

The calculation of diluted earnings per share for the year ended 31 
December 2004 is based on the net profit attributable to shareholders for 
the year of HK$105,762,000.  The weighted average number of ordinary 
shares used in the calculation is the 523,716,000 ordinary shares deemed 
to have been in issue during the year as used in the basic earnings per 
share calculation, and the weighted average of 543,000 ordinary shares 
assumed to have been issued at no consideration on the deemed exercise of 
all share options outstanding during the year. 

There was no potential dilutive ordinary shares in existence for the year 
ended 31 December 2003 and, accordingly, no diluted earnings per share 
amount has been presented.