GOLDBOND GROUP<00172> - Results Announcement
Goldbond Group Holdings Limited announced on 29/11/2006:
(stock code: 00172 )
Year end date: 31/03/2007
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Both Audit Committee and Auditors
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/04/2006 from 01/04/2005
to 30/09/2006 to 30/09/2005
Note ('000 ) ('000 )
Turnover : 26,147 16,439
Profit/(Loss) from Operations : 40,191 11,874
Finance cost : (11,941) (7,461)
Share of Profit/(Loss) of
Associates : 147 (1,601)
Share of Profit/(Loss) of
Jointly Controlled Entities : 101 2,965
Profit/(Loss) after Tax & MI : 20,476 1,486
% Change over Last Period : +1,278 %
EPS/(LPS)-Basic (in dollars) : 0.0123 0.001
-Diluted (in dollars) : 0.0104 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 20,476 1,486
Interim Dividend : NIL NIL
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim 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. BASIS OF PREPARATION
The condensed consolidated financial statements have been prepared in
accordance with the applicable disclosure requirements of Appendix 16 to
the Rules Governing the Listing of Securities on The Stock Exchange of
Hong Kong Limited and with the Hong Kong Accounting Standard 34 "Interim
financial reporting" issued by the Hong Kong Institute of Certified Public
Accountants (the "HKICPA").
2. PRINCIPAL ACCOUNTING POLICIES
The condensed consolidated financial statements have been prepared under
the historical cost basis except for investment properties and certain
financial instruments, which are measured at fair values.
The accounting policies used in the condensed consolidated financial
statements are consistent with those followed in the preparation of the
annual consolidated financial statements of Goldbond Group Holdings
Limited (the "Company") and its subsidiaries (hereinafter collectively
referred as the "Group") for the year ended 31 March 2006 except as
described below.
In the current interim period, the Group has applied, for the first time,
a number of new standards, amendments and interpretations (new "HKFRSs")
issued by the HKICPA, which are either effective for accounting periods
beginning on or after 1 December 2005, 1 January 2006 or 1 March 2006.
The adoption of these new HKFRSs has resulted in changes to the Group's
accounting policies in the following areas that have an effect on how the
results for the current or prior accounting periods have been prepared and
presented:
Financial guarantee contracts
In the current period, the Group has applied Amendments to HKAS 39
Financial Instruments: Recognition and Measurement and HKFRS 4 Insurance
Contracts which is effective for annual periods beginning on or after 1
January 2006.
A financial guarantee contract is defined by HKAS 39 as "a contract that
requires the issuer to make specified payments to reimburse the holder for
a loss it incurs because a specified debtor fails to make payment when due
in accordance with the original or modified terms of a debt instrument".
The Group acts as the issuer of the financial guarantee contracts
Prior to 1 January 2006, financial guarantee contracts were not accounted
for in accordance with HKAS 39 and those contracts were disclosed as
contingent liabilities. A provision for financial guarantee was only
recognised when it was probable that an outflow of resources would be
required to settle the financial guarantee obligation and the amount can
be estimated realiably.
Upon the application of these amendments, a financial guarantee contract
issued by the Group and not designated as at fair value through profit or
loss is recognised initially at its fair value less transaction costs that
are directly attributable to the issue of the financial guarantee
contract. Subsequent to initial recognition, the Group measures the
financial guarantee contract at the higher of: (i) the amount determined
in accordance with HKAS 37 "Provisions, Contingent Liabilities and
Contingent Assets"; and (ii) the amount initially recognised less, when
appropriate, cumulative amortisation recognised in accordance with HKAS 18
"Revenue".
In relation to financial guarantees granted to banks over the repayment of
loans by the jointly controlled entities, the Group has applied the
transitional provisions in HKAS 39. The fair value of the financial
guarantee contracts at the date of grant of HK$1,802,000, representing a
deemed capital contribution to the jointly controlled entities, has been
adjusted to the carrying amount of interest in jointly controlled entities
and a financial guarantee liability has been recognised. The effect of
this change in accounting policy is shown in Note 2A.
In relation to financial guarantees granted to customers under the
guarantee service business, the Group has applied the transitional
provisions in HKAS 39. The financial guarantee contracts issued by the
Group are recognised initially at their fair values less transaction costs
that are directly attributable to the issue of the financial guarantee
contracts. Subsequent to initial recognition, the Group measures
financial guarantee contracts at the higher of : (i) the amount determined
in accordance with HKAS 37 "Provisions, Contingent Liabilities and
Contingent Assets"; and (ii) the amount initially recognised less, when
appropriate, cumulative amortisation recognised in accordance with HKAS 18
"Revenue". There is no material impact on the effect of the change in
this accounting policy.
The Group has not early applied the following new standard, amendment and
interpretations that have been issued but are not yet effective. The
directors of the Company anticipate that the application of these
standard, amendment and interpretations will have no material impact on
the results and financial positions of the Group.
HKAS 1 (Amendment) Capital disclosures 1
HKFRS 7 Financial instruments: Disclosures 1
HK(IFRIC) - INT 8 Scope of HKFRS 2 2
HK(IFRIC) - INT 9 Reassessment of Embedded Derivatives 3
HK(IFRIC) - INT 10 Interim Financial Reporting and Impairment 4
1 Effective for annual periods beginning on or after 1 January 2007.
2 Effective for annual periods beginning on or after 1 May 2006.
3 Effective for annual periods beginning on or after 1 June 2006.
4 Effective for annual periods beginning on or after 1 November
2006.
2A. SUMMARY OF THE EFFECTS OF THE CHANGES IN ACCOUNTING POLICIES
The cumulative effect of the application of the new HKFRSs as at 1 April
2006 is summarised below:
As at As at
1 April 2006 1 April 2006
(originally stated) Adjustment (restated)
------------------------------------------------------
HK$'000 HK$'000 HK$'000
Balance sheet items
Interest in jointly controlled entities
95,467 1,037 96,504
Financial guarantee contracts
- (1,037) (1,037)
======================================================
1 April 2005 to 1 April 2005 to
30 September 2005 30 September 2005
(originally stated) Adjustment (restated)
-------------------------------------------------------------------
HK$'000 HK$'000 HK$'000
Profit and loss items
Other revenue
2,235 351 2,586
Share of profits of jointly controlled entities
3,316 (351) 2,965
=====================================================================
3. PROFIT BEFORE TAXATION
Profit before taxation has been arrived at after charging (crediting) the
following items:
1.4.2006 1.4.2005
to to
30.9.2006 30.9.2005
-------------------------
HK$'000 HK$'000
(unaudited) (unaudited)
Interest on:
Bank loans and other borrowings
7,877 3,742
Convertible notes 3,978 3,644
Redeemable convertible preference shares
86 75
----------------------------
11,941 7,461
============================
Operating lease charges in respect of properties
2,662 1,099
Staff costs 15,568 8,849
Allowance for amount due from jointly controlled entity
- 2,888
Impairment of goodwill - 7,954
-----------------------------
4. EARNINGS PER SHARE
The calculation of the earnings per share is based on the following data:
1.4.2006 1.4.2005
to to
30.9.2006 30.9.2005
-------------------------
HK$'000 HK$'000
Earnings for the purpose of basic earnings per share
20,476 1,486
============
Effect of dilutive potential ordinary shares:
Interest on convertible notes
3,978 N/A
--------
Earnings for the purpose of diluted earnings per share
24,454 N/A
=========
Number of shares
(in thousand)
----------------------
Weighted average number of ordinary shares for
the purpose of basic earnings per share
1,662,440 1,662,440
=============
Effect of dilutive potential ordinary shares:
Share options 37,664 N/A
Convertible notes 644,323 N/A
--------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share
2,344,427 N/A
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