XIN CORP<01141> - Results Announcement
Xin Corporation Limited announced on 25/07/2006:
(stock code: 01141 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Qualified
(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 : 166,345 180,892
Profit/(Loss) from Operations 4 : 2,513 2,738
Finance cost 5 : (4,649) (4,786)
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 : (15,994) (12,047)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) 6 : (0.193) (0.146)
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (15,994) (12,047)
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. Accounting Policies
In current year, the Group has adopted a number of new and revised
Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards
("new HKFRSs") that are effective for accounting periods commencing on or
after 1 January 2005. The adoption of the new HKFRSs has resulted in
changes in accounting policies and the presentation of various income
statement and balance sheet items. Last year's comparative figures are
restated to reflect the adoption of new HKFRSs during the year. Details
of the changes can be found in the Company's results announcement and
annual report.
2. Extract of Auditor's Report
Fundamental uncertainty relating to the going concern basis
The Group recorded net current liabilities of HK$17,364,000 and
deficiency in assets of HK$2,124,000 as at 31 March 2006. In forming our
opinion, we have considered the adequacy of the disclosures made in note 2
to the financial statements concerning the adoption of the going concern
basis on which the financial statements have been prepared. As explained
in note 2 to the financial statements, the Group is currently undertaking
a number of measures to improve its financial and current liquidity
position. The financial statements have been
prepared on a going concern basis, the validity of which depends
upon the ongoing support by the Group's holding companies, bankers and
other creditors, the availability of additional external funding and the
attainment of profitable and positive cash flow operations to meet the
Group's future working capital and financial requirements. The financial
statements do not include any adjustment that may be necessary should the
implementation of such measures be unsuccessful. We consider that
appropriate disclosures have been made in the financial statements
concerning this situation, but we consider that this fundamental
uncertainty relating to whether the going concern basis is appropriate is
so extreme that we have disclaimed our opinion.
Disclaimer of opinion
Because of the significance of the fundamental uncertainty
relating to the going concern basis, we are unable to form an opinion as
to whether the financial statements give a true and fair view of the state
of affairs of the Company and of the Group as at 31 March 2006 and of the
loss and cash flows of the Group for the year then ended and as to whether
the financial statements have been properly prepared in accordance with
the disclosure requirements of the Hong Kong Companies Ordinance.
3. Revenue
Revenue, which is also the Group's turnovers represents the net
invoiced value of goods sold, after allowances for returns and trade
discounts during the year.
Continuing Discontinued Total
operations operations
------------------ ------------------ --------------------
2006 2005 2006 2005 2006 2005
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Revenue
--------
Sale of goods
155,550 144,687 10,795 36,205 166,345 180,892
========================================================================
4. Profit/(Loss) From Operations
The Group's profit/(loss) before tax is arrived at after charging /
(crediting):
Continuing operations Discontinued operations Total
2006 2005 2006 2005 2006 2005
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Cost of inventories sold
136,723 132,223 6,726 23,729 143,449 155,952
Depreciation of items of property, plant and equipment
1,665 2,146 2,620 6,746 4,285 8,892
Depreciation of investment properties
430 - - - 430 -
Recognition of prepaid land lease payments
728 728 - - 728 728
Provision for impairment of accounts receivable
- 290 - - - 290
Minimun lease payments in respect of land and buildings
450 633 155 108 605 741
Auditors' remuneration
1,180 1,080 - - 1,180 1,080
Employee benefits expense (excluding directors' remuneration):
0 -
Wages and salaries
2,951 2,859 1,732 5,412 4,683 8,271
Equity-settled share option expenses
466 - - - 466 -
Pension scheme contributions
124 251 21 53 145 304
-----------------------------------------------------------------------
3,541 3,110 1,753 5,465 5,294 8,575
-----------------------------------------------------------------------
Foreign exchange differences, net
2,194 (40) (43) (168) 2,151 (208)
Impairment of items of property, plant and equipment
- - 3,873 111 3,873 111
Provision/(write-back of provision) against inventories
(485) 485 - 343 (485) 828
Revaluation surplus on leasehold buildings
- - - (1,164) - (1,164)
Gross and net rental income
654 - - - 654 -
=========================================================================
5. Finance Costs
2006 2005
Continuing Discontinued Total Continuing Discontinued Total
operations operations operations operations
------------------------------------- ---------------------------------
HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000
Finance costs
4,620 29 4,649 4,786 - 4,786
6. Loss per share
The calculation of basic loss per share amounts is based on the net loss
for the year attributable to equity holders of the Company for the year of
HK$15,994,000 (2005: HK$12,047,000 (restated)), and the weighted average
of 82,704,014 (2005: 82,704,014, restated to reflect the share
consolidation ordinary shares in issue during the year, as adjusted to
reflect the capital reorganization during the year.
Diluted loss per share amounts for the years ended 31 March 2006 and 2005
have not been disclosed as the convertible note and bonds and share
options outstanding during the year had anti-dilutive effects on the basic
loss per share for these years.
|