Computer And Technologies Holdings Limited — Earnings Release 2005

Apr 24, 2006

Listed Company Information

Listed Company Information
CHINA AEROSPACE<00031> - Results Announcement China Aerospace International Holdings Limited announced on 24/04/2006: (stock code: 00031 ) Year end date: 31/12/2005 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/01/2005 from 01/01/2004 to 31/12/2005 to 31/12/2004 Note ($ ) ($ ) Turnover : 1,780,938,000 1,410,240,000 Profit/(Loss) from Operations 1 : 440,461,000 (132,408,000) Finance cost : (39,289,000) (50,102,000) Share of Profit/(Loss) of Associates : 274,000 (102,000) Share of Profit/(Loss) of Jointly Controlled Entities : (9,125,000) (9,996,000) Profit/(Loss) after Tax & MI : 286,403,000 (137,740,000) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) 2 : 0.134 (0.064) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 286,403,000 (137,740,000) 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. Profit from operations has been arrived at after charging: 2005 2004 HK$'000 HK$'000 Auditors' remuneration 2,747 2,617 Cost of inventories consumed 1,096,065 1,052,125 Depreciation on - owned assets 51,826 45,957 - assets held under finance leases 2,926 1,867 Minimum lease payments paid under operating leases on land and buildings 3,511 10,675 Research expenses 9,321 1,488 Total staff costs, including directors' remuneration 176,926 140,838 and after crediting: Gross rental income from - land and buildings 159 6,217 - investment properties 21,112 18,311 -------- -------- 21,270 24,528 Less: Outgoings (2,898) (5,009) -------- -------- 18,373 19,519 Gain on disposal of property, plant and equipment 2,885 Interest income 7,317 2,239 (Allowance) reversal of allowance for obsolete inventories (12,033) 19,371 ========= ========= 2. Earnings per share The calculation of the basic earnings per share is based on the following data: 1.1.2005 1.1.2004 to to 31.12.2005 31.12.2004 HK$'000 HK$'000 Net Profit (loss) Net profit (loss) for the period for calculation of basic earnings per share 286,403 (137,740) ========= ========== Number of Shares Weighted average number of ordinary shares for the calculation of basic earnings per share 2,142,420,000 2,142,420,000 ============== ============== No diluted earnings per share has been presented for both periods as there is no dilutive potential share in issue. 2. Prior Year Adjustment On 7 December 2004, the Company together with certain subsidiaries (" Borrowers") entered into a debt restructuring deed ("Deed") with Bank of China ("BOC") for the purpose of restructuring the debts due to BOC. Conditional upon compliance with the terms of the Deed, BOC agreed to waive debts of HK$193,520,000. This amount was recognised as income in the consolidated income statement for the year ended 31 December 2004. However, the Company's auditors considered that not until such time as the conditions set out in the terms of the Deed have been fully complied with, it is not appropriate to recognise the waiver as income. The net assets as at 31 December 2004 and the profit for the year then ended as stated in the financial statements of the Group for the year ended 31 December 2004 should be reduced by that amount. Therefore, the recognition of waiver of HK$192,520,000 was qualified in the financial statements for the year ended 31 December 2004. On 21 December 2005, the Borrowers entered into a supplemental agreement with BOC to revise the terms of the Deed ("Supplemental Agreement"). Pursuant to the terms of the Supplemental Agreement, the waived debts were reduced to HK$176,024,000. The directors of the Company are of the opinion that since the conditions attached to the Supplemental Agreement are satisfied and a confirmation from the legal counsel opining that the Group has been fully released/ discharged from all obligations relating to the waived amount upon the execution of the Supplemental Agreement being effective, it is therefore more appropriate to derecognize the waiver of HK$193,520,000 for the year ended 31 December 2004 as a correction of accounting error through a restatement of comparative figures in accordance with Hong Kong Accounting Standards ("HKAS") 8 " Accounting policies, changes in accounting estimates and errors". 4. Certain comparative figures have been restated in order to achieve a consistent presentation.