China Pipe Group Limited — Earnings Release 2003

Apr 20, 2004

Listed Company Information

Listed Company Information
PRIME SUCCESS<00210> - Results Announcement Prime Success International Group Limited announced on 20/4/2004: (stock code: 00210 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2003 from 1/1/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 1,407,007 1,180,669 Profit/(Loss) from Operations : 107,809 51,333 Finance cost : (5,780) (9,009) Share of Profit/(Loss) of Associates : 230 243 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 82,935 25,849 % Change over Last Period : +221 % EPS/(LPS)-Basic (in dollars) : 0.0551 0.0173 -Diluted (in dollars) : 0.055 0.0173 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 82,935 25,849 Final Dividend : 1.50 cents 1.20 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 25/5/2004 to 31/5/2004 bdi. Payable Date : 8/6/2004 B/C Dates for Annual General Meeting : 25/5/2004 to 31/5/2004 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Dividend 2003 2002 HK$'000 HK$'000 Interim dividend, paid, of HK1.0 cent (2002: HK0.8 cent) per ordinary share 15,289 11,987 Final dividend, proposed, of HK$1.5 cents (2002: HK1.2 cents) per ordinary share (Note) 22,933 17,981 ------------------------ 38,222 29,968 ======================== Note: At a meeting held on 20th April 2004, the board of directors recommended a final dividend of HK1.5 cents per ordinary share for the year ended 31st December 2003. This proposed dividend is not reflected as a dividend payable in these accounts, but will be reflected as an appropriation of retained earnings for the year ending 31st December 2004. 2. Earnings per share The calculation of basic and diluted earnings per share is based on the Group's profit attributable to shareholders of approximately HK$82,935,000 (Restated 2002: HK$25,849,000). The basic earnings per share is based on the weighted average number of 1,504,118,411 (2002: 1,498,392,384) shares in issue during the year. The diluted earnings per share for the year ended 31st December 2003 is based on 1,507,682,404 shares which is the weighted average number of shares in issue during the year plus the weighted average number of 3,563,993 shares deemed to be issued at no consideration if all outstanding options had been exercised. As the respective prices of the share options outstanding during the period from 1st January 2002 to 28th March 2002 were greater than the average market prices of the Company's share, there was no dilution effect on the basic earnings per share for the year ended 31st December 2002. 3. Change of the last corresponding results In 2003, the Group adopted Statement of Standard Accounting Practice ("SSAP") No.35 "Accounting for Government Grants and Disclosure of Government Assistance" and SSAP No.12 (revised) "Income Taxes", which are effective for accounting periods commencing on or after 1st July 2002 and 1st January 2003, respectively. The adoption of SSAP 35 did not have significant impact to the accounts. The changes to the Group's accounting policy and the effect of adopting SSAP 12 (revised) are set out below: Upon the adoption of SSAP 12 (revised), deferred taxation is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the accounts. Taxation rates enacted or substantively enacted by the balance sheet date are used to determine deferred taxation. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. Deferred taxation is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. In prior years, deferred taxation was accounted for at the current taxation rate in respect of timing differences between profit as computed for taxation purposes and profit as stated in the accounts to the extent that a liability or an asset was expected to be payable or recoverable in the foreseeable future. The adoption of the revised SSAP 12 represents a change in accounting policy, which has been applied retrospectively so that the comparative figures presented have been restated to conform to the changed policy. Opening retained profits at 1st January 2002 and 2003 have been increased by approximately HK$10,359,000 and HK$10,624,000, respectively, which represent the unrecognised net deferred tax assets. This change has resulted in an increase in deferred tax assets and deferred tax liabilities at 31st December 2002 by approximately HK$10,769,000 and HK$535,000, respectively. The profit and amount charged to equity for the year ended 31st December 2002 have been increased by approximately HK$265,000 and reduced by approximately HK$390,000, respectively.