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.
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