NEW TIMES GROUP<00166> - Results Announcement
New Times Group Holdings Limited announced on 26/07/2006:
(stock code: 00166 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/04/2005 from 01/04/2004
to 31/03/2006 to 31/03/2005
Note ('000 ) ('000 )
Turnover : 5,400 5,024
Profit/(Loss) from Operations : (1,471) (16,987)
Finance cost : (967) (464)
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 : (2,892) (17,909)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.007) (0.04)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (2,892) (17,909)
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 PRESENTATION
The consolidated financial statements of the company have been
prepared in accordance with Hong Kong Financial Reporting
Standards ("HKFRS") and Hong Kong Accounting Standards ("HKAS")
and interpretations ("HKAS-Int") (Collectively the "HKFRS") issued
by the Hong Kong Institute of Certified Public Accountants ("
HKICPA"). The consolidated financial statements have been prepared
under the historical cost convention as modified by the
revaluation of investment properties and financial assets at fair
value through profit or loss at fair value.
2. ACCOUNTING POLICIES
In 2005, the Group adopted the new/revised HKFRSs below, which are
relevant to its operations. The comparative figures 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 16 Property, plant and equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee Benefits
HKAS 21 The effect 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 Earning per share
HKAS 36 Impairment of assets
HKAS 37 Provisions, Contingent Liabilities and
Contingent Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and
Measurement
HKAS 39 (Amendment) Transition and Initial Recognition of
Financial Assets and Financial Liabilities
HKAS 40 Investment Property
HKFRS 2 Share-based Payment
HKFRS 3 Business combination
HKFRS 5 Non-current Assets Held for Sale and
Discontinued
HKAS-Int 12 Consolidation-Special Purpose Entities
HKAS-Int 12 (Amendment) Scope of HKAS-Int 12 Consolidation-Special
Purpose Entities
HKAS-Int 15 Operating Leases-Incentives
HKAS-Int 21 Income taxes-Recovery of Revalued Non-
Depreciable assets
The overall effects of the adoption of these new/revised HKFRSs
are to decrease the opening equity as at 1 April 2005 and 2004 by
HK$367,000 and HK$256,000 respectively and to decrease the loss
for the year ended 31 March 2005 by HK$361,000. The major changes
in the Group's significant accounting policies or the presentation
of financial statements as a result of the adoption of these new/
revised HKFRS are summarised as follows:
(a.) HKAS 1 and HKAS 27
The adoption of HKAS 1 and HKAS 27 has mainly
resulted in the following presentational change in
the Group's financial statements:
- minority interests are now required to be shown
within the Group's equity. On the face of the
consolidated income statement, minority interests
are presented as an allocation of the total profit
or loss for the year; and
- intangible assets are now required to be
presented on the face of balance sheet.
(b.) HKAS 17
The adoption of revised HKAS 17 has resulted in a
change in an accounting policy relating to the
reclassification of leasehold land from properties
to operating leases prepayments. The up-front
prepayments made for the leasehold land are
initially stated at cost and expensed in the
income statement on a straight-line basis over
the period of the lease or when there is
impairment, the impairment is expensed in the
income statement.
In prior years, the leasehold land was stated at
revalued amount less accumulated amortization and
impairment losses.
This change in accounting policy has been applied
retrospectively so that the comparative figures
presented have been restated to conform with the
changed policy. The effect on the adoption of the
HKAS 17 is to increase and decrease the opening
equity as at 1 April 2005 and 2004 by HK$105,000
and HK$256,000 respectively and to decrease the
loss for the year ended 31 March 2005 by
HK$361,000.
(c.) HKASs 32 and 39
The adoption of HKAS 32 "Financial Instruments:
Disclosure and Presentation" and HKAS 39 "
Financial Instruments: Recognition and
Measurement" has resulted in a change in the
accounting policy relating to the recognition,
measurement, derecognition and disclosure of
financial assets and liabilities.
In accordance with provisions of HKAS 39, the
Group reclassified their investments into loans
and receivables and financial assets at fair value
through profit or loss. Loans and receivables are
carried initially at fair value and subsequently
at amortised cost less any provision for
impairment. Financial assets at fair value through
profit or loss are carried at fair value with any
unrealized gains and losses included in the income
statement in the period in which they arise. In
prior years, investments of the Group were
included in short term investments which were
stated fair values.
HKAS 39 does not permit to recognise, derecognize
and measure financial assets and liabilities on a
retrospective basis. Accordingly, the Group
redesignates all investments into loans and
receivables and financial assets at fair value
through profit or loss as at 1 April 2005.
(d.) HKAS 40
The adoption of HKAS 40 "Investment Property" has
resulted in a change in the accounting policy
whereby the changes in fair values of investment
properties are recorded in the income statement.
In prior years, the increases in fair value were
credited to the investment properties revaluation
reserve. Decreases in fair value were first set
off against increases on earlier valuations on a
portfolio basis and thereafter expensed in the
income statement.
This change was adopted by increasing the opening
balance of retained profits as of 1 April 2005 by
HK$2,527,000 and decreasing the investment
property revaluation reserve by HK$2,999,000
respectively. Comparative amounts have not been
restated as permitted under the transitional
provisions of HKAS 40.
(e.) HKFRS 2
The adoption of HKFRS 2 has resulted in a change
in the accounting policy for share-based payments.
The Group operates an equity-settled, share-based
compensation plan. Until 31 March 2005, the
provision of share options granted by the Company
to the Group's employees did not result in
expenses in the income statement. With effect from
1 April 2005, the fair value of the employee
services received in exchange for the grant of the
share options of the Company is recognised as an
expense. The total amount to be expensed is
determined by reference to the fair value of the
share options granted by the Company.
As all the share options previously granted by the
Company was vested on or before 1 April 2005,
accordingly, no adjustment is made in the Group's
financial statements pursuant to the transitional
provisions as set out in HKFRS 2.
(f.) HKFRS 3
The adoption of HKFRS 3 has resulted in a change
in the accounting policy for goodwill and negative
goodwill. In prior years, goodwill or negative
goodwill on acquisitions of subsidiaries, jointly
controlled entities or associates on or after 1
January 2001 was:
- Amortised on a straight-line basis over its
estimated useful life of not exceeding 20 years;
and
- Assessed for impairment on goodwill at each
balance sheet date.
In accordance with the provisions of HKFRS 3:
- The Group ceased amortisation of goodwill with
effect from 1 April 2005;
- Accumulated amortisation of goodwill as at 31
March 2005 has been eliminated with a
corresponding decrease in the cost of goodwill;
- Goodwill is tested annually for impairment, as
well as when there is indication of impairment;
and
- The carrying amount of negative goodwill as at
31 March 2005 is derecognised and reflected as an
adjustment to the Group's opening equity as at 1
April 2005.
The adoption of HKFRS 3 does not have any
significant impact to the Group.
(g.) HKFRS 5
Pursuant to HKFRS 5, the Group's interest in Ideal
Far East Limited, a wholly owned subsidiary of the
Company were classified as discontinued operation
subsequent to the cessation of precision
components processing equipment trading business
in 2005 as detailed in note 7 below.
The adoption of HKFRS 5 has resulted in certain
changes in presentation of financial statements. A
single amount on the face of the income statement
comprising the aggregate of the post-tax loss
relating to discontinued operation was disclosed.
In prior years, results of discontinued operations
were incorporated in the individual lines on the
face of the income statement. An analysis of the
revenue, expenses, pre-tax loss of discontinued
operation was also disclosed in the notes to the
financial statement.
The adoption of HKASs 2, 7, 8, 10, 12, 16, 18, 19, 21, 23,
24, 27, 33, 36, 37, 38, HKAS-Int 12, 15 and 21 did not
result in any significant change to the Group's
significant accounting policies and the presentation of
the Group's financial statements.
3. PROFIT /(LOSS) BEFORE TAXATION INCLUDED THE FOLLOWING ITEMS
2006 2005
______________________
$'000 $'000
After charging -
Loss on disposal of short term listed investment, net
- (5,415)
Loss on disposal of financial assets at fair value through profit and loss
(1,408) -
Amortization of goodwill - (2,951)
Unrealized loss on short term listed investment
- (4,454)
Write-back of provision for legal and professional costs
- 409
========================
4. TURNOVER AND PROFITS FROM CONTINUING AND DISCONTINUED OPERATIONS
2006
__________________________________________________________________________
Continuing operations Discontinued operations
____________________________________________ __________________________
Property Provision of Trading of precision
investment Financial components
services Total processing equipment
__________ _____________ _____________ __________________________
HK$'000 HK$'000 HK$'000 HK$'000
Segment revenue:
Sales and services to external customers
4,542 858 5,400 -
Other revenue
182 121 303 -
__________ _____________ _____________ __________________________
Total
4,724 979 5,703 -
========== ============= ============= ==========================
Segment results
2,316 728 3,044 (1,139)
========== ============= ==========================
Fair value loss on investment properties
(943)
Interest income, dividend income and unallocated revenue
2,375
Unallocated expenses (4,808)
_____________
Operating loss (332)
Finance costs (967)
_____________
Loss before income tax from continuing
operations before tax (1,299)
Income tax expenses (454)
______________
Loss for the year from continuing
operations (1,753)
Loss for the year from discontinued
operations (1,139)
______________
Loss for the year (2,892)
==============
2005(Restated)
__________________________________________________________________________
Continuing operations Discontinued operations
____________________________________________ __________________________
Property Provision of Trading of precision
investment Financial components
services Total processing equipment
__________ _____________ _____________ __________________________
HK$'000 HK$'000 HK$'000 HK$'000
Segment revenue:
Sales and services to external customers
4,095 881 4,976 48
Other revenue
- 79 79 1,070
__________ _____________ _____________ __________________________
Total
4,095 960 5,055 1,118
========== ============ ============= ==========================
Segment results
2,448 937 3,385 (486)
========== ============ ==========================
Write-back of provision for legal and professional costs
409
Interest income, dividend income and unallocated revenue
1,098
Unallocated expenses (21,393)
______________
Operating loss (16,501)
Finance costs (464)
______________
Loss before income tax from continuing
operations before tax (16,965)
Income tax expenses (458)
______________
Loss for the year from continuing
operations (17,423)
Loss for the year from discontinued
operations (486)
______________
Loss for the year (17,909)
==============
5. LOSS PER SHARE
The calculation of basic loss per share was based on loss
attributable to shareholders for the year of HK$2,892,000 (2005:
HK$17,909,000(as restated)) and on 433,302,000 (2005: 433,302,000)
ordinary shares in issue during the year. Details of basic loss
per share are analysed as follows:
2006 2005
_____ _____
HK cents HK cents
(Restated)
Basic loss per share
- continuing operations (0.41) (4.02)
- discontinued operation (0.26) (0.11)
________ ________
(0.67) (4.13)
======= ========
As there are no dilutive potential ordinary shares as at 31 March
2006 and 2005, the dilutive loss per share is equal to the basic
loss per share.
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