SAMSON PAPER<00731> - Results Announcement
Samson Paper Holdings Limited announced on 21/07/2006:
(stock code: 00731 )
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 : 3,120,108 2,944,408
Profit/(Loss) from Operations : 99,692 103,977
Finance cost : (53,587) (31,714)
Share of Profit/(Loss) of
Associates : (5,402) 2,499
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 30,449 56,584
% Change over Last Period : -46 %
EPS/(LPS)-Basic (in dollars) : 0.071 0.132
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 30,449 56,584
Final Dividend : $0.01 $0.03
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 19/09/2006 to 25/09/2006 bdi.
Payable Date : 03/10/2006
B/C Dates for Annual
General Meeting : 19/09/2006 to 25/09/2006 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. BASIS OF PREPARATION AND ACCOUNTING POLICIES
The consolidated accounts have been prepared in accordance with Hong Kong Financial
Reporting
Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants.
The
consolidated accounts have been prepared under the historical cost convention, as
modified by the
revaluation of buildings, financial assets and financial liabilities (including
derivative instruments) at fair
value through profit or loss, which are carried at fair value.
The adoption of new/revised HKFRSs
In 2006, the Group adopted the new/revised Hong Kong Accounting Standards ("HKASs") and
interpretations of HKFRSs below, which have not been early adopted by the Group for the
preparation
of the 2005 consolidated accounts and are relevant to its operations. The 2005
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 16 Property, Plant and Equipment
HKAS 17 Leases
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 39 Financial Instruments: Recognition and Measurement
HKAS 39 (Amendment) Transition and Initial Recognition of Financial Assets and
Financial Liabilities
HKFRS 3 Business Combination
The adoption of HKAS 1,2,7,8,10,16,21,23,24,27,28 and 33 did not result in substantial
changes to the
Group's accounting policies. In summary:
HKAS 1 has affected the presentation of minority interests, share of net after-tax
results of associated
companies and other disclosures.
HKAS 21 had no material effect on the Group's policy. The functional currency of each of the
consolidated entities has been re-evaluated based on the guidance to the revised
standard. All the
Group entities have the same functional currency as the presentation currency for
respective entity
accounts.
HKAS 2,7,8,10,16,23,24,27,28 and 33 had no material effect on the Group's policies.
The adoption of revised HKAS 17 has resulted in a change in the accounting policy relating
to the
reclassification of leasehold land and land use rights from property, plant and
equipment to operating
leases. The up-front prepayments made for the leasehold land and land use rights with a
carrying value
of HK$71,415,000 as at 31 March 2006 (31 March 2005: HK$73,098,000) are reclassified as
prepaid
premium for land leases payments instead of property, plant and equipment, which are
expensed in the
consolidated profit and loss account on a straight-line basis over the period of the
leases.
The adoption of HKAS 32 and HKAS 39 has resulted in the recognition of derivative financial
instruments at fair value and the change in the recognition and measurement of hedging
activities.
The adoption of HKFRS 3 and HKAS 36 results in a change in the accounting policy for
goodwill. Until
31 March 2005, goodwill was:
- Amortised on a straight line basis over a period of 10 years; and
- Assessed for impairment at each balance sheet date.
In accordance with the provisions of HKFRS 3 and HKAS 36:
- The Group ceased amortisation of goodwill from 1 April 2005;
- Accumulated amortisation as at 31 March 2005 has been eliminated with a corresponding
decrease in the cost of goodwill;
- From the year ended 31 March 2006 onwards, goodwill is tested annually for impairment, as
well as when there is indication of impairment.
Effect of the above changes in accounting policies on profit after taxation for the year
ended 31 March
2006:
Attributable to
equity holders
HK$'000
Increase in profit after taxation-HKFRS 3 and HKAS 36 709
Effect of the above changes in accounting policies on balance sheet as at 31 March 2006 and
31 March
2005:
31 March 2006 31 March 2005
HKAS 17 HKAS 32 & 39 HKFRS3 & HKAS 17 HKAS 32 & 39 HKFRS3 &
HKAS 36 HKAS 36
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Decrease in property,
plant and equipment 71,415 - - 73,098 - -
Increase in prepaid
premium on
land leases 71,415 - - 73,098 - -
Increase in retained
earnings 4,636 - - - - -
Decrease in deferred
tax liabilities 4,636 - - - - -
Increase in other
financial assets at
fair value through
profit or loss - 1,798 - - - -
Increase in other
financial liabilities
at fair value through
profit or loss - 703 - - - -
Decrease in other
receivable - 1,095 - - - -
Increase in interests in
associated companies - - 709 - - -
The following new Standards or Interpretations or Amendments that have been issued but
are not yet
effective were not early-adopted. The management are in the process of assessing the
impact.
HKAS 1 (Amendment) Presentation of Financial Statements: Capital Disclosures
HKAS 19 (Amendment) Actuarial Gains and Losses, Group Plans and Disclosures
HKAS 21 (Amendment) Net Investment in a Foreign Operation
HKAS 39 (Amendment) Cash Flow Hedge Accounting of Forecast Intragroup Transactions
HKAS 39 (Amendment) The Fair Value Option
HKAS 39 and HKFRS 4 (Amendment) Financial Guarantee Contracts
HKFRS 1 (Amendment) First-time Adoption of Hong Kong Financial Reporting Standards
HKFRS 6 Exploration for and Evaluation of Mineral Resources
HKFRS 7 Financial Instruments: Disclosures
HKFRS-Int 4 Determining whether an Arrangement contains a Lease
HKFRS-Int 5 Rights to Interests Arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds
HK(IFRIC)-Int 6 Liabilities arising from Participating in Specific Market-Waste
Electrical and Electronic Equipment
HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29 Financial Reporting in
Hyperinflationary Economies
HK(IFRIC)-Int 8 Scope of HKFRS 2
HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives
2. EARNINGS PER SHARE
The calculation of basic earnings per share is based on the audited consolidated profit
attributable to
shareholders of the Company of HK$30,449,000 (2005: HK$56,584,000) and on the weighted
average
number of 429,258,039 shares (2005: 429,258,039 shares) of the Company in issue during
the financial
year.
|