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KAM HING INT'L<02307> - Results Announcement

Kam Hing International Holdings Limited announced on 21/09/2006:
(stock code: 02307 )
Year end date: 31/12/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

                                                        (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                           : 895,632            760,005           
Profit/(Loss) from Operations      : 83,964             89,410            
Finance cost                       : (19,010)           (9,107)           
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       : 57,236             69,933            
% Change over Last Period          : -18.2     %
EPS/(LPS)-Basic (in dollars)       : 0.0894             0.1093            
         -Diluted (in dollars)     : N/A                0.1090            
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 57,236             69,933            
Interim Dividend                   : NIL                NIL
  per Share                                              
(Specify if with other             : N/A                N/A
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   


1.      Basis of presentation and accounting policies

The condensed consolidated interim financial statements of the Group have 
been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 
"Interim Financial Reporting" issued by the Hong Kong Institute of 
Certified Public Accountants ("the HKICPA") and with the disclosure 
requirements of Appendix 16 to the Rules Governing the Listing of 
Securities (the "Listing Rules") of The Stock Exchange of Hong Kong 
Limited (the "Hong Kong Stock Exchange"). These condensed consolidated 
financial statements are unaudited but have been reviewed by the Company's 
audit committee.

The basis of preparation and accounting policies adopted in preparing 
these condensed financial statements are consistent with those adopted in 
the preparation of the Group's annual financial statements for the year 
ended 31 December 2005 except for the adoption of the following amendment 
mandatory for periods beginning on or after 1 January 2006:

HKAS 39 and HKFRS 4 (Amendment)         Financial Guarantee Contracts

In accordance with the amendments to HKAS 39 regarding financial guarantee 
contracts, financial guarantee contracts are initially recognised at fair 
value and are subsequently measured at the higher of (i) the amount 
determined in accordance with HKAS 37 and (ii) the amount initially 
recognised, less, when appropriate, cumulative amortisation recognised in 
accordance with HKAS 18. The adoption of the above revised HKFRS has no 
material impact of the Group's interim financial statements.

The Group has not early applied the following new and revised HKFRSs 
relevant to the Group's financial statements, that have been issued but 
not yet effective in the period covered by these interim financial 
statements which are effective for periods beginning on or after 1 January 

HKAS 1 Amendment        Capital Disclosures
HKFRS 7                 Financial Instruments: Disclosures

The Group expects that the adoption of the pronouncements listed above 
will not have any significant impact on the Group's financial statements 
in the period of initial application.

2.      Revenue and other income

Revenue, which is also the Group's turnover, represents the net invoiced 
value of goods sold, after allowances for returns and trade discounts, and 
services provided by the Group. All significant intra-group transactions 
have been eliminated on consolidation.

An analysis of the revenue and other income is as follows:

                        Six months ended        Six months ended 
                        30 June 2006            30 June 2005
                        HK$'000                 HK$'000
                        (Unaudited)             (Unaudited)
   Production and sale of knitted fabric and 
   dyed yarn and provision of related 
   subcontracting services      
                        895,632                 760,005
Other income                    
  Fee income from freight handling services     
                        1,558                   2,806
  Bank interest income  549                     166
  Gross rental income   742                     665
  Others                922                     201
                        3,771                   3,838
                        899,403                 763,843

3.      Profit before tax

The Group's profit before tax is arrived at after charging/ (crediting):

                        Six months ended        Six months ended 
                        30 June 2006            30 June 2005
                        HK$'000                 HK$'000
                        (Unaudited)             (Unaudited )
Cost of inventories sold        
                        713,756                 571,012
Cost of services provided       
                        1,502                   2,688
Auditors' remuneration  721                     470
Research and development costs          
                        1,900                   1,528
Depreciation of property, plant and equipment           
                        34,640                  25,626
Depreciation of investment properties           
                        188                     188
Amortisation of prepaid land lease payments             
                        444                     224
Employee benefits expense (including directors' remuneration):                  
  Wages and salaries    51,462                  42,565
  Equity-settled share option expenses          
                        -                       2,000
  Pension scheme contributions          
                        1,811                   1,421
                        53,273                  45,986
Minimum lease payments under operating leases 
  in respect of land and buildings              
                        653                     445
Loss on disposal of items of property, plant and 
   equipment            474                     -
Loss on equity investment at fair value         
                        31                      -
Allowance/provision for doubtful debts          
                        129                     -
Write back of allowance/provision for doubtful 
  debts                 (12,771)                (147)
Foreign exchange difference, net                
                        2,912                   (1,078)

4.      Finance costs                                                      
                        Six months ended        Six months ended 
                        June 2006               30 June 2005    
                        HK$'000                 HK$'000
                        (Unaudited)             (Unaudited)
Interest on bank loans and overdrafts 
  wholly repayable within five years            
                        16,337                  7,675
Interest on finance leases              
                        2,673                   1,432
                        19,010                  9,107

5.      Tax

                        Six months ended        Six months ended 
                        30 June 2006             30 June 2005
                        HK$'000                 HK$'000
                        (Unaudited)             (Unaudited)

Current tax - Hong Kong                         
  Charge for the period 3,108                   4,760
    Overprovision in respect of prior periods           
                        (31)                    (660)
Current tax - Elsewhere                         
  Charge for the period 4,445                   6,149
    Underprovision in respect of prior periods          
                        -                       121
Deferred tax charged    196                     -
Total tax charge for the period         
                        7,718                   10,370

Profits tax in Hong Kong is calculated at 17.5% (2005: 17.5%) on the 
estimated assessable profits for the period. Tax in elsewhere is 
calculated at tax rates prevailing in the respective jurisdictions.

6.        Dividend

The Board has resolved not to declare any interim dividend for the Period 
(2005 June: Nil).

7.        Earnings per share 

The calculation of basic earnings per share is based on the profit for the 
period attributable to ordinary equity holders of the Company of HK$57,
236,000 (2005 June: HK$69,933,000) and the weighted average of 640,000,000 
(2005 June: 640,000,000) ordinary shares in issue during the Period.

Diluted earnings per share for the period ended 30 June 2006 has not been 
disclosed, as the share options outstanding during the Period had an anti
-dilutive effect on the basic earnings per share during the period.

The calculation of diluted earnings per share for the period ended 30 June 
2005 was based on the profit for the period attributable to ordinary 
equity holders of the Company of HK$69,933,000. The weighted average of 
641,324,000 ordinary shares in issue during that period, comprising 640,
000,000 ordinary shares used in the basic earnings per share calculation, 
and the weighted average of 1,324,000 ordinary shares assumed to have been 
issued on the deemed exercise of all share options outstanding during that