PRIME SUCCESS<00210> - Results Announcement
Prime Success International Group Limited announced on 22/09/2005:
(stock code: 00210 )
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 01/01/2005 from 01/01/2004
to 30/06/2005 to 30/06/2004
Note ('000 ) ('000 )
Turnover : 1,154,576 839,572
Profit/(Loss) from Operations : 133,153 82,062
Finance cost : (2,023) (1,537)
Share of Profit/(Loss) of
Associates : 128 78
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 106,730 68,276
% Change over Last Period : +56 %
EPS/(LPS)-Basic (in dollars) : 0.0674 0.0426
-Diluted (in dollars) : N/A 0.0418
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 106,730 68,276
Interim Dividend : 2.50 cents 1.50 cents
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 07/10/2005 to 12/10/2005 bdi.
Payable Date : 21/10/2005
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 interim accounts have been prepared
in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim
Financial Reporting" issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA").
These condensed consolidated interim accounts should be read in
conjunction with the 2004 annual accounts.
The accounting policies and methods of computation used in the preparation
of these condensed consolidated interim accounts are consistent with those
used in the annual accounts for the year ended 31 December 2004 except
that the Group has changed certain of its accounting policies following
the adoption of new/revised Hong Kong Financial Reporting Standards ("
HKFRSs") and Hong Kong Accounting Standards (collectively referred as "new
HKFRSs") which are effective for accounting periods commencing on or
after 1 January 2005.
The changes to the Group's accounting policies and the effect of adopting
these new policies are set out in Note 2 below.
2 Effect of adopting new HKFRSs
In 2005, the Group adopted the new HKFRSs below, which are relevant to its
operations. The 2004 comparatives have been amended as required, in
accordance with the relevant requirements. The adoption of the new HKFRSs
has the following impacts on the Group's accounting policies and/or
presentation of accounts:
(i) The adoption of HKAS 1 "Presentation of Financial Statements" has
affected the presentation of minority interests, share of net after-tax
results of associated company and other disclosures.
(ii) The adoption of HKAS 17 has resulted in a change in the accounting
policy relating to the classification of payments for the acquisitions of
land use rights. In prior years, land use rights were accounted for at
cost or valuation less accumulated depreciation and accumulated
impairment. In accordance with the provisions of HKAS 17, the up-front
prepayments made for land use rights are expensed in the consolidated
profit and loss account on a straight-line basis over the period of the
lease or where there is impairment, the impairment is expensed in the
consolidated profit and loss account. HKAS 17 has been applied
retrospectively.
(iii) The adoption of HKASs 32 and 39 has resulted in a change in the
accounting policy relating to the classification of financial assets at
fair value through profit and loss account and available-for-sale
financial assets. It has also resulted in the recognition of derivative
financial instruments at fair value and the change in the recognition and
measurement of hedging activities. HKAS 39 does not permit to recognise,
derecognise and measure financial assets and liabilities in accordance
with this standard on a retrospective basis. The Group applied the
previous SSAP 24 "Accounting for investments in securities" to investments
in securities. The adjustments required for the accounting differences
between SSAP 24 and HKAS 39 are determined and recognised at 1 January
2005.
(iv) The adoption of HKFRS 2 has resulted in a change in the accounting
policy for share-based payments. Until 31 December 2004, the provision of
share options to employees did not result in an expense in the profit and
loss account unless the options were granted at a discount of the market
price, where the discount was expensed in the profit and loss account.
Effective on 1 January 2005, the Group expenses the cost of share options
granted in the profit and loss account. The Group has taken the advantage
of the transitional provisions of HKFRS 2 under which the new recognition
and measurement policies have not been applied to share options granted on
or before 7 November 2002 and all options granted to employees after 7
November 2002 but vested before 1 January 2005. No adjustments were
resulted from the adoption of HKFRS 2.
The effect of changes in the above accounting polices on the consolidated
profit and loss account is as follows:
Six months ended 30 June 2005 Six months ended 30 June
2004
HKAS 1 HKAS 17 HKAS 39 HKAS 1 HKAS 17
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Decrease in share of results of an associated company
(47) - - (29) -
Decrease in taxation charge
47 - - 29 -
Decrease in depreciation of fixed assets
- (500) - - (413)
Increase in amortisation of land use rights
- 500 - - 413
Increase in fair value of derivative financial instruments
- - 2,068 - -
______ _______ _________ ______ _____
Net increase in consolidated profit
- - 2,068 - -
====== ===== ======= ======= =====
The effect of changes in the above accounting polices on the consolidated
balance sheet is as follows:
30 June 2005 31 December 2004
HKAS 17 HKAS 39 HKAS 17 HKAS 39
HK$'000 HK$'000 HK$'000 HK$'000
Increase/(decrease)
in assets
Land use rights 21,375 - 21,865 -
Fixed assets (22,559) - (23,049) -
Available-for-sale
financial assets - 33,437 - -
Investment securities - (33,437) - -
Derivative financial
instruments - 3,216 - -
Increase/(decrease) in liabilities/equity
Derivative financial
instruments - 1,148 - -
Deferred tax
liabilities (390) - (390) -
Retained profits - 2,068 - -
Property revaluation
reserve (794) - (794) -
3 Earnings per share
The calculation of basic and diluted earnings per share is based on the
Group's profit attributable to shareholders of HK$106,334,000 (2004: HK$
66,030,000). The basic earnings per share is based on the weighted
average number of 1,578,250,023 (2004: 1,549,447,329) ordinary shares in
issue during the six months ended 30 June 2005.
No diluted earnings per share has been presented as there were no dilutive
potential shares in issue during the six months ended 30 June 2005. The
diluted earnings per share for the six months ended 30 June 2004 is based
on 1,579,324,086 ordinary shares which is the weighted average number of
ordinary shares in issue during the period plus the weighted average
number of 29,876,757 ordinary shares deemed to be issued at no
consideration if all outstanding share options had been exercised.
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