CHINA WIRELESS<02369> - Results Announcement
China Wireless Technologies Limited announced on 22/08/2005:
(stock code: 02369 )
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 : 172,396 102,046
Profit/(Loss) from Operations : 40,284 20,533
Finance cost : (1,815) (1,085)
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 : 32,626 16,856
% Change over Last Period : +94 %
EPS/(LPS)-Basic (in dollars) : 0.08 0.06
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 32,626 16,856
Interim Dividend : $0.01 N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 12/09/2005 to 15/09/2005 bdi.
Payable Date : 29/09/2005
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
The interim financial statements have been prepared in accordance with
the applicable disclosure requirements of the Rules Governing the Listing
of Securities on The Stock Exchange of Hong Kong Limited (the "Listing
Rules"), Hong Kong Accounting Standard ("HKAS") 34 "Interim financial
reporting" issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA").
2. Turnover
For the six months ended 30 June 2005, the Group accomplished a turnover
of HK$172,396,000, representing a growth of 68.9% over that of the same
period of 2004. The increase was the result of a shift of business focus
of the Group to smartphone products in response to market demand, which
led to a large increase in smartphone sales from HK$63,875,000 in 2004 to
HK$160,384,000 in 2005. During the period under review, over 45,000 units
of smartphone have been sold, which number is comparable to the 2004 full
year sales figures.
In terms of revenue mix, during the period under review, turnover from
smartphones accounted for 93% of the Group's turnover, as compared with
63% for the corresponding period in 2004. Contribution from sales of
wireless coverage system decreased from 11% for the six months ended 30
June 2004 to 4% over the corresponding period in 2005, and turnover from
integrated telecom business platform increased by about HK$ 1 million
compared with that of the corresponding period of 2004, but representing a
slight decrease of 1% in the revenue mix in 2005 in view of the strong
growth in overall turnover of the Group. The Group ceased the sales of
other terminal products for the six months ended 30 June 2005, which sales
have accounted for 14% of the turnover for the same period in 2004, for
the following reasons : (1) the fixed wireless terminal market in the PRC
is vanishing; and (2) a shift of the Group's business focus to the
smartphone market.
3. Net Profit
For the six months ended 30 June 2005, the Group recorded a net profit of
HK$32,626,000, representing an increase of 94% over 2004. The net profit
margin raised from 16.5% for the six months ended 30 June 2004 to 19.0%
for the corresponding period in 2005. The major reasons for such increase
during the period under review include: (1) economy of scale resulting
from the enlarged operations of the Group which lead to a lower average
cost of sales ; (2) the Group effectively adopted measures to improve
administrative efficiency and to control administrative cost. As a result,
the proportion of administrative expenses to turnover decreased by 3% in
the first half of 2005 as compared to the corresponding period in 2004.
4. EARNINGS PER SHARE
The calculation of basic earnings per share for the report period is based
on the profit from ordinary activities attributable to shareholders of
HK$32,626,000 and the weighted average number of 400,000,000 ordinary
shares in issue during the report period.
No diluted earnings per share amounts for the six months ended 30 June
2005 have been presented as the Company did not have any dilutive
potential ordinary shares during the report period.
5. DIVIDEND
The Directors resolved to recommend the payment of an interim dividend of
HK$0.01 per share in respect of the six months ended 30 June 2005 to
shareholders whose names appear on the register of members of the Company
by close of business on 15 September 2005. (Six months ended 30 June 2004:
Nil). For these purposes, the register of members of the Company will be
closed from 12 September 2005 to 15 September 2005 (both days inclusive)
during which no transfer of share(s) will be effected.
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