FUJIAN HOLDINGS<00181> - Results Announcement
Fujian Holdings Limited announced on 15/12/2005:
(stock code: 00181 )
Year end date: 31/12/2005
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 ($ ) ($ )
Turnover : 8,505,592 8,627,682
Profit/(Loss) from Operations : 18,191,718 (4,939,718)
Finance cost : (1,294,824) (740,165)
Share of Profit/(Loss) of
Associates : (197,963) 82,651
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 13,217,959 (5,611,696)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : 0.0254 (0.0108)
-Diluted (in dollars) : 0.0253 (0.0107)
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 13,217,959 (5,611,696)
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
These unaudited condensed consolidated financial statements are prepared
in accordance with Hong Kong Accounting Standards 34 "Interim Financial
Reporting" issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA")
These condensed consolidated financial statements should be read in
conjunction with the 2005 annual report.
The accounting policies and computation method used in the preparation of
these condensed consolidated financial statements are consistent with
those adopted in the financial statements for the year ended 31 March 2005
except that the Group has adopted certain new or revised Hong Kong
Financial Reporting Standards ("HKFRSs") and Hong Kong Accounting
Standards and Interpretations issued by the HKICPA ("new HKFRSs") which
are effective for accounting periods commencing on or after 1 January
2005.
These interim financial statements have been prepared in accordance with
those new HKFRSs issued and effective as at the time of preparing these
information. The new HKFRSs that will be applicable on 1 January 2006,
including those that will be applicable on an optional basis, cannot be
ascertioned at the time of preparing these interim financial information.
2. CHANGES IN ACCOUNTING POLICIES
Except for the adoption of the following new HKFRSs, the adoption of other
new HKFRSs has no material impact on the accounting policies of the Group
and the computation method of the condensed consolidated financial
statements of the Group.
HKAS 40 Investment Property
HKFRS 2 Share-based Payments
HKFRS 3 Business Combinations
Investment Property
The adoption of HKAS 40 has resulted in a change in the accounting policy
for investment properties of which the changes in fair values of
properties are recorded in the income statement as part of other income
and retrospective application is required. In prior years, the increases
in fair value were credited to the investment properties revaluation
reserves. Decreases in fair value were first set off against increases on
earlier valuations on a portfolio basis and thereafter expensed in the
income statement.
Share-based Payments
In prior years, no employee benefit costs or obligations were required to
be recognized by the Group when employees (which term includes directors)
were granted share options over shares in the Company. If any share option
is exercised, equity will be increased by the amount of the proceeds
received.
With effect from 1 January 2005, in order to comply with HKFRS 2, the
Group recognizes the fair value of such share options as an expense in the
income statement, or as an asset, if the cost qualifies for recognition as
an asset under the Group's accounting policies. A corresponding increase
is recognized in a capital reserve within the equity of the Group.
Where the employees are required to meet vesting conditions before they
are entitled to the share options, the Group recognizes the fair value of
the share options granted over the vesting period. Otherwise, the Group
recognizes the fair value in the period in which the options are granted.
If an employee chooses to exercise share options, the related share option
reserve is transferred to share capital and share premium, together with
the exercise price. If the share options lapse and remain unexercised, the
related share option reserve is transferred directly to retained earnings.
Business Combinations
In accordance with HKFRS 3 and with effect from 1 January 2005, if the
fair value of the net assets acquired in a business combination exceeds
the consideration paid (i.e. an amount arises which would have been known
as negative goodwill under the previous accounting policy), the excess is
recognized immediately in the income statement as it arises.
The adoption of HKAS 40 and HKFRS 2 have resulted in changes of
accumulated losses and other reserves as at 1 April 2005 and the opening
accumulated losses and other reserves.
Share capital
Accumulated and other
losses reserves
(Increase)/ Increase/
Decrease (Decrease) Total
HK$ HK$ HK$
Effects of new accounting systems and policies
HKAS 40
Revaluation surplus of investment properties
7,266,392 (7,266,392) -
HKFRS 2
Granting of option shares
(2,338,400) 2,338,400 -
___________________ ________________ ___________
Total effect
4,927,992 (4,927,992) -
========== ============= =============
For the six months ended 30 September
2005 2004
HK$ HK$
Effect of new policies
(2005: profit increase/(decrease))
(2004: loss (increase)/decrease)
HKFRS 2 - (2,338,400)
HKFRS 3 - -
______________ _____________
Total effect for the period - (2,338,400)
=============== =============
Effect on earnings / (loss) per share
- basic - (0.45) cents
- diluted - (0.45) cents
================ ==============
3. Earnings/(loss) per share
The calculation of basic earnings/(loss) per share is based on the
consolidated net earnings attributable to the shareholders for the period
ended 30 September 2005 of HK$13,217,959 (2004: loss of HK$5,611,696) and
the weighted average number of 520,000,000 (2004: 519,993,846) shares in
issue as at 30 September 2005.
Diluted earnings per share was calculated assuming that the conversion of
all the ordinary shares with potential dilution effect has been completed
upon the adjustment of the weighed average number of shares in issue. In
respect of the share options, the number of shares which may be subscribed
was determined by the fair value of the monetary values attached to the
subscription rights of the share options in issue. The fair value was
determined by the average share price of the Company during the year. The
increase in the number of shares in the above calculation was assumed to
be the number of the shares issued through the exercise of the share
options.
For the six months ended 30 September 2004 and 2005, all the share options
granted under the new share option scheme adopted on 10 May 2004 at an
exercise price of HK$0.184 per share have dilution effect.
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