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
options)
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
Remarks:
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
date.
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
statements.
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
Turnover
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.
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