Listed Company Information
 

SHUN CHEONG<00650> - Results Announcement

Shun Cheong Holdings Limited announced on 21/12/2005:
(stock code: 00650 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee

                                                        (Unaudited )
                                     (Unaudited )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2005    from 01/04/2004
                                     to 30/09/2005      to 30/09/2004
                               Note  ('000      )       ('000      )
Turnover                           : 245,488            249,407           
Profit/(Loss) from Operations      : (6,805)            (8,423)           
Finance cost                       : (1,051)            (775)             
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       : (7,957)            (12,446)          
% Change over Last Period          : N/A       %
EPS/(LPS)-Basic (in dollars)       : (0.0657)           (0.1073)          
         -Diluted (in dollars)     : N/A                N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : (7,957)            (12,446)          
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 Preparation and Accounting Policies

The unaudited condensed consolidated interim financial statements are 
prepared in accordance with the requirements of the Appendix 16 of the 
Rules Governing the Listing of Securities on The Stock Exchange of Hong 
Kong Limited (the "Listing Rules") and the Hong Kong Accounting Standard 
("HKAS") 34 "Interim Financial Reporting". The accounting policies and 
basis of preparation adopted in the preparation of the interim financial 
statements are the same as those used in the annual financial statements 
for the year ended 31 March 2005, except in relation to the following new 
and revised Hong Kong Financial Reporting Standards ("HKFRSs", which also 
include HKASs and Interpretations) that affect the Group and are adopted 
for the first time for the current period's financial statements:

HKAS 1  Presentation of Financial Statements
HKAS 2  Inventories
HKAS 7  Cash Flow Statements
HKAS 8  Accounting Policies, Changes in Accounting Estimates and Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 12 Income Taxes
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 23 Borrowing Costs
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial Statements
HKAS 32 Financial Instruments: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 37 Provisions, Contingent Liabilities and Contingent Assets
HKAS 39 Financial Instruments: Recognition and Measurement

The adoption of the HKAS 1, 2, 7, 8, 10, 12, 16, 17, 18, 19, 21, 23, 24, 
27, 33 and 37 did not result in substantial changes to the Group's 
accounting policies. In summary:

-       HKAS 1 has affected the presentation of minority interests, share 
of net after-tax results of associates and other disclosures.

-       HKAS 2, 7, 8, 10, 12, 16, 17, 18, 19, 21, 23, 27, 33 and 37 had no 
material effect on the Group's policies.

-       HKAS 24 has affected the identification of related parties and 
some other related-party disclosures.

 
The impact of the adoption of HKAS 32 and HKAS 39 is summarized as 
follows:

(i)     Available-for-sale investments

In prior period, the Group classified its non-trading investments in 
unlisted equity securities as long term investments and were stated at 
cost less impairment losses.

Upon the adoption of HKAS 32 and HKAS 39, these securities are classified 
as available-for-sale investments.  After initial recognition, available-
for-sale investments are measured at fair value with gains or losses being 
recognised as a separate component of equity until the investment is sold, 
collected or otherwise disposed of or until the investment is determined 
to be impaired at which time the cumulative gain or loss previously 
reported in equity is included in the profit and loss account.

The fair value of investments that are actively traded in organised 
financial markets is determined by reference to quoted market bid prices 
at the close of business on the balance sheet date.  For investments where 
there is no active market, fair value is determined using valuation 
techniques.  Such techniques include using recent arm's length market 
transactions; reference to the current market value of another instrument 
which is substantially the same; and discounted cash flow analysis and 
option pricing models.

When the fair value of unlisted equity securities cannot be reliably 
measured because (1) the variability in the range of reasonable fair value 
estimates is significant for that investment, or (2) the probabilities of 
the various estimates within the range cannot be reasonably assessed and 
used in estimating fair value, such securities are stated at cost less any 
impairment losses.

The Group assesses at each balance sheet date whether there is any 
objective evidence that an available-for-sale investment is impaired as a 
result of one or more events that occurred after the initial recognition 
of the assets ("loss events"), and that the loss event has an impact on 
the estimated future cash flows that can be reliably estimated.

If there is objective evidence of impairment, the cumulative loss that had 
been recognised directly in equity shall be removed from equity and 
recognised in the profit and loss account.  The amount of the loss 
recognised in the profit and loss account shall be the difference between 
the acquisition cost and current fair value, less any impairment loss on 
that available-for-sale investment previously recognised in the profit and 
loss account.

This change in accounting policy has had no effect on the consolidated 
profit and loss account and retained profits.  The comparatives on the 
consolidated balance sheet at 31 March 2005 have been restated to reflect 
the reclassification.

(ii)    Investments at fair value through profit or loss

In prior periods, the Group's investments in listed equity securities 
which were expected not to be realised within 12 months from the balance 
sheet date was classified as long term investments and were measured at 
fair value, with unrealised gains and losses included in the profit and 
loss account.

Upon the adoption of HKAS 32 and HKAS 39, this investment is classified as 
investments at fair value through profit or loss.

This change in accounting policy has had no effect on the consolidated 
profit and loss account and retained profits.  The comparatives on the 
consolidated balance sheet at 31 March 2005 have been restated to reflect 
the reclassification.

2.      Finance costs

                                                Six Months Ended
                                                30 September
                                                2005            2004
                                                HK$'000         HK$'000
                                
                                
Interest on bank loans, overdrafts
 and other borrowings wholly 
 repayable within five years                    764             391
Interest on finance leases                       94              43
Bank charges                                    193             341
                                                _____           _____   
                                                1,051           775
                                                =====           ====

3.      Loss before Tax

Loss before tax is arrived at after charging/(crediting):

                                                Six Months Ended
                                                30 September
                                                2005            2004
                                                HK$'000         HK$'000
                                
Depreciation                                       588             972
Staff costs (including directors' remuneration) 20,106          24,655
Impairment loss of available-for-sale investments    -             944
Unrealised (gain)/loss on investments at fair 
value through profit or loss                      (133)             95
(Gain)/loss on disposals of fixed assets            (9)             19
Interest income                                   (651)           (591)
                                                _________       _________       
                        

4.      Loss per Share

                                        Six Months Ended 30 September
                                        2005            2004
                                        HK$'000         HK$'000
                                
Loss                            
Loss attributable to equity 
holders of the parent used in
the basic loss per share calculation    (7,613)         (12,446)
                                        ===========     ===========     
Shares                          
Number of ordinary shares in issue
 during the year used in the basic 
 loss per share calculation             115,930,400     115,930,400
                                        ===========     ===========

Diluted loss per share amounts for the six months ended 30 September 2005 
and 2004 have not been disclosed as no diluting events existed during 
those periods.

5.      Comparative Amounts

As explained in note 1, due to the adoption of new and revised HKFRSs 
during the current period, the presentation of certain items and balances 
in the condensed consolidated financial statements have been revised to 
comply with the new requirements.  Accordingly, certain comparative 
amounts have been reclassified to conform to the current period's 
presentation.