MIDAS PRINTING<1172> - Results Announcement
Midas Printing Group Limited announced on 7/4/2000:
(stock code: 1172)
Year end date: 31/12/1999
Currency: HKD (Audited)
(Audited) Last
Current Corresponding
Period Period
from 1/1/1999 from 1/1/1998
to 31/12/1999 to 31/12/1998
('000) ('000)
Turnover
- Continuing : 472,522 420,823
- Discontinued : - -
Operating Profit/(Loss)
- Continuing : 36,901 31,625
- Discontinued : - -
Total Operating Profit/(Loss) : 36,901 31,625
Share of Profit/(Loss) of
Associated Companies : - -
Share of Profit/(Loss) of
Jointly Controlled Entities : - -
Profit/(Loss) after Tax & MI : 25,425 26,657
% Change over Last Period : -4.6%
EPS/(LPS)-Basic : 10.7 cents 11.3 cents
-Diluted : 10.6 cents 11.2 cents
Extraordinary (ETD) Gain/(Loss) : - -
Profit/(Loss) after ETD Items : 25,425 26,657
Final Dividend per Share : Nil 4 cents
(Specify if with other options) : - -
B/C Dates for Final Dividend : N/A
Payable Date : -
B/C Dates for (-) General Meeting : N/A
Other Distribution for Current Period : -
B/C Dates for Other Distribution : N/A
Remarks:
1. In the current year, the Group has adopted new Statement of Standard
Accounting Practice ("SSAP") 24 issued by the Hong Kong Society of
Accountants and an accounting policy of expending pre-operating expenses
as incurred.
In adopting SSAP 24, the Group has selected the alternative treatment for
securities other than held-to-maturity securities. The accounting
treatment specified by SSAP 24 has been applied retrospectively
resulting in an increase of retained profits at 1st January, 1999 and
profit in 1998 of approximately HK$324,000 and a decrease in profit in
1999 of the same amount. Comparative information has been restated to
reflected this change in accounting policy.
In prior years, pre-operating expenses were capitalised and amortised, on
a straight line basis, over a period of five years from the date of
commencement of commercial operations of new factories. The adoption of
SSAP 1 has led to reassessment of this accounting policy. In particular,
pre-operating expenses are not considered to give rise to an identifiable
resource from which economic benefits are expected to flow to the Group.
Accordingly, such expenditure is now recognised as an expense in the
period in which it is incurred.
This change in accounting policy has been applied retrospectively
resulting in a decrease in the Group's net assets and retained profits and
translation reserve at 1st January, 1999 by approximately HK$19,663,000,
HK$19,635,000 and HK$28,000, respectively; and an increase in the Group's
net profit for the year ended 31st December, 1999 by approximately
HK$5,796,000 (1998: HK$5,796,000). Comparative information has been
restated to reflect this change in accounting policy.
2. Taxation
1999 1998
HK$'000 HK$'000
The charge comprises:
Hong Kong Profits Tax
Current year 2,580 1,060
Overprovision in previous years (215) (60)
Refund for the year (90) -
Overseas taxation - current year 301 -
------ -------
2,576 1,000
Deferred taxation 8,900 3,968
------ -------
11,476 4,968
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Hong Kong Profits Tax is calculated at 16% (1998: 16%) of the estimated
assessable profit for the year. Taxation arising in other jurisdictions is
calculated at the rates prevailing in the relevant jurisdictions.
The Company's subsidiaries in the People's Republic of China (the "PRC")
are exempted from income tax in the PRC for two years starting from the
first profit making year followed by a 50 per cent. reduction in the
income tax rate in the following three years (the "Tax Reduction Period").
During the year, one of these subsidiaries was operating within the Tax
Reduction Period (1998: the tax exemption period) and accordingly, was
subject to income tax at a reduced rate. PRC income tax is calculated at
the applicable rate relevant to that PRC subsidiary. The other
subsidiaries were still operating within the tax exemption period.
3. Dividend
1999 1998
HK$'000 HK$'000
Final Dividend - nil
(1998: HK 4 cents) per share, proposed - 9,461
----- -------
4. Earnings per share
The calculation of the basic and diluted earnings per share is based on
the following data:
1999 1998
HK$'000 HK$'000
Profit for the year 25,425 26,657
====== ======
Number of ordinary shares for the purposes
of basic earnings per share 236,516,068 236,516,068
Effect of dilutive potential
ordinary shares in respect of
share options 2,419,773 1,178,390
----------- ------------
Number of ordinary shares for
the purposes of diluted
earnings per share 238,935,841 237,694,458
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