FUJIAN HOLDINGS<00181> - Results Announcement
Fujian Holdings Limited announced on 19/04/2006:
(stock code: 00181 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/04/2005 from 01/04/2004
to 31/12/2005 to 31/03/2005
Note ($ ) ($ )
Turnover : 11,415,143 16,541,818
Profit/(Loss) from Operations : 16,453,950 3,009,998
Finance cost : (2,066,857) (3,033,973)
Share of Profit/(Loss) of
Associates : (443,612) 2,632,866
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 11,282,972 3,462,148
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : 0.0217 0.0067
-Diluted (in dollars) : 0.0217 0.0066
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 11,282,972 3,462,148
Final Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final 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 financial statements have been prepared in accordance with Hong Kong
Financial Reporting Standards ("HKFRSs"), which collective term includes
all individual Hong Kong Financial Reporting Standards, Hong Kong
Accounting Standards ("HKASs") and Interpretations issued by the Hong Kong
Institute of Certified Public Accountants ("HKICPA"), accounting
principles generally accepted in Hong Kong, the requirements of the Hong
Kong Companies Ordinance and the applicable disclosure provisions of the
Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited.
The HKICPA has issued a number of new and revised HKFRSs that are
effective for accounting periods beginning on or after 1 January 2005.
Information on the changes in accounting policies resulting from initial
application of these new and revised HKFRSs for the current and prior
accounting periods reflected in these financial statements is provided.
The financial year end dates of the Group and the Company were changed
from 31 March to 31 December with effect from 25 August 2005 for the
purpose of rendering the Company coterminous with that of the Company's
ultimate holding company. These financial statements cover a period of
nine months from 1 April 2005 to 31 December 2005. Accordingly, the
comparative amounts presented for the consolidated income statement,
consolidated statement of changes in equity, consolidated cash flow
statement and related notes are not for a comparable time period.
2. Change in accounting policies
The HKICPA has issued a number of new and revised HKFRSs that are
effective or available for early adoption for accounting periods beginning
on or after 1 January 2005. The Group has adopted the new HKFRSs below,
which are relevant to its operations, in the preparation of the
consolidated financial statements. The comparatives have been amended as
required, in accordance with the relevant requirements.
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 14 Segment Reporting
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 28 Investments in Associates
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
HKAS 40 Investment Property
HKAS-Int 2 The Appropriate Policies for Hotel Properties
HKAS-Int 21 Income Taxes - Recovery of Revalued Non-Depreciated Assets
HKFRS 2 Share-based Payments
HKFRS 3 Business Combinations
Except for the following, the adoption of the HKFRSs did not result in
substantial changes to the Group's accounting policies, financial
statement disclosures or presentation as compared to that used in the
preparation of the annual financial statements as of and for the year
ended 31 March 2005.
(a) Negative goodwill (HKFRS 3, Business combinations and HKAS 36,
Impairment of assets)
With effect from 1 April 2005 and in accordance with HKFRS 3, 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
recognised immediately in the income statement as it arises. The change in
policy relating to negative goodwill had no effect on the financial
statement for the year ended 31 March 2005 as there was no negative
goodwill as at and for the year ended 31 March 2005.
(b) Investment properties (HKAS 40, Investment property)
In prior years, movements in the fair value of the Group's investment
property was recognised directly in the investment property revaluation
reserve except when the reserve was insufficient to cover a deficit, or
when a deficit previously recognised in the income statement had reversed,
or when an individual investment property was disposed of. In these
limited circumstances movements in the fair value were recognised in the
income statement.
Under the adoption of HKAS 40 as from 1 April 2005, all changes in the
fair value of investment property is recognised directly in the income
statement in accordance with the fair value model in HKAS 40. The change
in policy has been adopted retrospectively and comparative amount has been
restated accordingly.
(c) Share-based payments (HKFRS 2, Share-based payments)
The adoption of HKFRS 2 has resulted in a change in the accounting policy
for share-based payments. Until 31 March 2005, the provision of share
options to employees did not result in an expense in the income
statements. Effective on 1 April 2005, the Group expenses the cost of
share options in the income statement.
(d) HKAS 1 has affected the share of net after-tax results of
associates and other disclosures
In prior years, the Group's share of taxation of associates accounted for
using the equity method was included as part of the Group's income tax in
the consolidated income statement. With effect from 1 April 2005, in
accordance with the implementation guidance in HKAS 1, the Group has
changed the presentation and includes the share of taxation of associates
accounted for using the equity method in the respective shares of profit
or loss reported in the consolidated income statement before arriving at
the Group's profit or loss before tax. These changes in presentation have
been applied retrospectively with comparatives restated.
(e) HKAS 24 has affected the identification of related parties and
some other related party disclosures.
(f) HKAS 17 - Leases
In prior years, leasehold land and buildings held for own use were stated
at cost less accumulated depreciation and any impairment losses.
Upon the adoption of HKAS 17, the Group's leasehold interest in land and
buildings are separated into leasehold land and leasehold buildings.
Leasehold land is classified as operating leases, because the title of
land is not expected to be passed to the Group by the end of the leases
terms, and is reclassified from property, plant and equipment to prepaid
land lease payments. Leasehold buildings continue to be classified as part
of property, plant and equipment. Prepaid land lease payments under
operating leases are initially stated at cost and subsequently amortised
on the straight-line basis over the respective lease terms. When the lease
payment cannot be allocated between the land and buildings elements, the
entire lease payment is included in the cost of land and building as a
finance lease in property, plant and equipment. This change in accounting
policy has had no effect on the previously reported consolidated income
statement and accumulated losses.
3. Profit from operations
Period from
1 April 2005 to Year ended
31 December 31 March
2005 2005
(HKD) (HKD)
Profit from operations is
stated after crediting and
charging the following:
Gross rental income from
letting of investment
properties 728,600 952,400
Less: Outgoings (51,523) (73,792)
----------- ----------
677,077 878,608
----------- -----------
Depreciation:
- hotel properties 1,432,054 3,400,714
- other owned property,
plant and equipment 386,744 189,486
----------- -----------
1,818,798 3,590,200
----------- -----------
Auditors' remuneration 425,000 300,000
Operating lease rentals for
rented premises 262,805 287,729
Loss on disposal of property,
plant and equipment 15,889 9,423
Net exchange loss - 39,344
Retirement benefits costs 28,618 23,133
Amortisation of prepaid land
lease payments 1,324,265 3,144,746
============= =============
4. Earnings per share
(a) The calculation of basic earnings per share is based on the
consolidated profit attributable to the shareholders of HK$11,282,972 (
year ended 31 March 2005 (restated): HK$3,462,148) and the weighted
average number of 520,000,000 ordinary shares (31 March 2005: 520,000,000
ordinary shares) deemed to be in issue during the period.
(b) The calculation of diluted earnings per share is based on the
consolidated profit attributable to the shareholders of HK$11,282,972 (
year ended 31 March 2005 (restated): HK$3,462,148) and the adjusted
weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Company has
share options which are dilutive potential ordinary shares. Share options
calculation is done to determine the number of shares that would have been
acquired at fair value (determined as the average annual market share
price of the Company's shares) based on the monetary value of the
subscription rights attached to outstanding share options. The number of
shares calculated as above is compared with the number of shares that
would have been issued assuming the exercise of the share options.
Reconciliation: 31 December 31 March
2005 2005
(HKD) (HKD)
Weighted average number of
ordinary shares 520,000,000 520,000,000
Adjustments for - share options 61,098 3,032,790
------------ ------------
Weighted average number of ordinary
shares for diluted earnings per share 520,061,098 523,032,790
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