ASIA COMM HOLD<00104> - Results Announcement
Asia Commercial Holdings Limited announced on 17/12/2004:
(stock code: 00104 )
Year end date: 31/3/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 1/4/2004 from 1/4/2003
to 30/9/2004 to 30/9/2003
Note ('000 ) ('000 )
Turnover : 122,714 112,844
Profit/(Loss) from Operations : (10,668) 46,017
Finance cost : (675) (686)
Share of Profit/(Loss) of
Associates : (69) (458)
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : (11,272) 45,313
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0338) 0.1358
-Diluted (in dollars) : N/A 0.1349
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (11,272) 45,313
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 SIGNIFICANT ACCOUNTING POLICIES
The condensed financial statements have been prepared in accordance with
the applicable disclosure requirements set out in Appendix 16 of the Rules
Governing the Listing of Securities ("Listing Rules") on The Stock
Exchange of Hong Kong Limited ("Stock Exchange") and with the Statement of
Standard Accounting Practice ("SSAP") 25 "Interim Financial Reporting"
issued by the Hong Kong Institute of Certified Public Accountants
("HKICPA").
The accounting policies adopted in these condensed financial statements
are consistent with those set out in the Group's audited financial
statements for the year ended 31st March, 2004.
2. TURNOVER AND OTHER REVENUE
Six months ended
30th September,
2004 2003
HK$'000 HK$'000
(unaudited) (unaudited)
Turnover
Sales of watches 119,692 108,800
Rental income
Investment properties 1,785 1,985
Land and buildings 46 147
Others 298 280
2,129 2,412
Programming service 893 1,632
-------------------------
122,714 112,844
Other revenue
Dividend income - 48
Interest income 222 326
Customer services income and others 3,638 3,500
3,860 3,874
-------------------------
126,574 116,718
=========================
3. OTHER OPERATING EXPENSES, NET
Six months ended
30th September,
2004 2003
HK$'000 HK$'000
(unaudited) (unaudited)
Provision for bad and doubtful debts (789) (121)
Provision for slow-moving inventories (4,822) (8,137)
Net unrealized gain on revaluation of investments in
securities - 2,775
Written back of trade and other payables
68 206
------------------------
(5,543) (5,277)
========================
4. OTHER (EXPENSES) INCOME, NET
Six months ended
30th September,
2004 2003
HK$'000 HK$'000
(unaudited) (unaudited)
Write off of fixed assets (2) (70)
Amortization of goodwill (230) (424)
Management fee (Note) (6,013) -
Provision for impairment loss on leasehold property
(747) -
Deficit arising from valuation of an investment property
(3,006) -
Receipt of further consideration from the disposal
of Lakeview Project - 47,361
------------------------
(9,998) 46,867
========================
Note: During the period under review, the Group's OEM manufacturing
activities has been dormant. The Chinese partner of a Group's Dongguan
joint venture ("Joint Venture") wanted the Group to reactive its OEM
manufacturing activities in the Joint Venture. Such proposal was
considered by the Group inconsistent with the Group's corporate strategy
since 1997. The Chinese partner of the Joint Venture later issued a
written notice dated 15th September, 2004 demanding for management fee in
the previous years amounting to RMB6,374,200 (approximately HK$ 6
million). The Group does not admit the validity of the claim and has
instructed PRC lawyers to handle the matter. The Directors would consider
appropriate settlement proposals if those are advantageous to the Group.
For the sake of prudence, the Group made a full provision for the amount
claimed against the income statement and would review the provision from
time to time.
5. (LOSS) EARNINGS PER SHARE
Including the receipt of further consideration from the disposal of
Lakeview Project in the previous period:
The calculation of the basic and diluted (loss) earnings per share for the
six months ended 30th September, 2004 and 2003 is computed based on the
following data:
Six months ended
30th September,
2004 2003
HK$ HK$
(unaudited) (unaudited)
(Loss) earnings
Net (loss) profit for the period and (loss) earnings for the
purpose of basic (loss) earnings per share
(11,272 ,000) 45,313,000
--------------
Effect of dilutive potential ordinary shares
Finance costs on convertible notes 675,000
-----------
Earnings for the purpose of diluted earnings per share
45,988,000
===========
Six months ended
30th September,
2004 2003
(unaudited) (unaudited)
Number of shares
Weighted average number of ordinary shares for the
purpose of basic (loss) earnings per share
333,719,516 333,719,516
============
Effect of dilutive potential ordinary shares
- Convertible notes 7,199,098
------------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share 340,918,614
============
Excluding the receipt of further consideration from the disposal of the
Lakeview Project in the previous period:
The calculation of the additional basic loss per share for the six months
ended 30th September, 2004 and 2003 is computed based on following data:
Six months ended
30th September,
2004 2003
HK$ HK$
(unaudited) (unaudited)
(Loss) earnings
Net (loss) profit for the period (11,272,000) 45,313,000
=============
Adjustment for:
Receipt of further consideration from the disposal of
the Lakeview Project (47,361,000)
-------------
Loss for the purpose of basic loss per share excluding
the receipt of further consideration from the disposal of
the Lakeview Project (2,048,000)
=============
Number of shares
Same as those details above for basic (loss) earnings per share.
The additional basic loss per share figure is disclosed to give a clearer
indication of the underlying performance of the Group.
No disclosure of the additional diluted loss per share for the period
under review and the corresponding previous period is shown as the issue
of potential ordinary shares during both periods from the exercise of the
outstanding share options and convertible notes will be anti-dilutive.
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