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
options)
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
Remarks:
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
2007:
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)
__________________________________________________________________________
Revenue
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
period.
|