Coolpad Group Limited — Earnings Release 2005

Apr 12, 2006

Listed Company Information

Listed Company Information
CHINA WIRELESS<02369> - Results Announcement China Wireless Technologies Limited announced on 12/04/2006: (stock code: 02369 ) 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 ('000 ) ('000 ) Turnover : 353,995 245,545 Profit/(Loss) from Operations : 63,297 53,243 Finance cost : (2,979) (2,048) 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 : 50,876 43,667 % Change over Last Period : +17 % EPS/(LPS)-Basic (in dollars) : 0.1266 0.1426 -Diluted (in dollars) : 0.1255 0.1426 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 50,876 43,667 Final Dividend : $0.02 $0.02 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 16/05/2006 to 18/05/2006 bdi. Payable Date : 08/06/2006 B/C Dates for Annual General Meeting : 16/05/2006 to 18/05/2006 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. BASIS OF PREPARATION These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") (which also include Hong Kong Accounting Standards ("HKASs") and Interpretations) issued by the Hong Kong Institute of Certified Public Accountants, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for investment properties, and certain buildings, which have been measured at fair value. These financial statements are presented in Hong Kong dollars and all values are rounded to the nearest thousand (HK$'000) except when otherwise indicated. The consolidated financial statements include the financial statements of the Company and its subsidiaries for the year ended 31 December 2005. Adjustments are made to bring into line any dissimilar accounting policies that may exist. The results of subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. All significant intercompany transactions and balances within the Group are eliminated on consolidation. 2. TURNOVER For the year ended 31 December 2005, the Group accomplished a turnover of HK$354.0million, representing a growth of 44.2% over that of 2004. The increase was principally attributable to sales of the smartphone products which increased by 86% to HK$325.6million from HK$175.4million in 2004. In terms of revenue mix, turnover from smartphones accounted for 92% of the Group's turnover in 2005, as compared with 71% in 2004. Contribution from sales of wireless coverage system decreased from 11% in 2004 to 6% in 2005, while that of integrated telecom business platform decreased from 4% in 2004 to 2% in 2005. Sales from other terminal products vanished in revenue mix was attributable to the upgrading of the Group's wireless terminal products and the changing environment for the market and technologies developments. 3. NET PROFIT For the year ended 31 December 2005, the Group recorded a net profit of HK$50.9million, representing an increase of 16.5% over 2004. The net profit margin dropped from 17.8% in 2004 to 14.4% in 2005. The major reasons were that, during the reporting period: (1) the gross profit margin of the Group dropped; (2) the Group increased its research and development expenses; and (3) the increase in marketing promotion and brand building expenses. 4. EARNINGS PER SHARE ATTRIBUTABLE TO ORDINARY EQUITY HOLDERS OF THE PARENT The calculation of basic earnings per share amount is based on the net profit for the year attributable to ordinary equity holders of the parent, and the weighted average number of ordinary shares in issue during the year, as adjusted to reflect the rights issue during the year. The calculation of diluted earnings per share amounts is based on the net profit for the year attributable to ordinary equity holders of the parent company. The weighted average number of ordinary shares used in the calculation is the ordinary shares in issue during the year, as used in the basic earnings per share calculation and the weighted average number of ordinary shares assumed to have been issued at no consideration on the deemed exercise or conversion of all the dilutive potential ordinary shares into ordinary shares. 5. DIVIDEND The proposed declaration of a final dividend for the year of HK$0.02 per share (equivalent to a dividend of approximately HK$9,964,000) will be subject to the approval of the Company's shareholders at the forthcoming annual general meeting. The register of members of the Company will be closed from 16 May 2006 to 18 May 2006 (both days inclusive) for the purposes of the forthcoming annual general meeting("AGM") and the proposed declaration of a final dividend. It is expected that, upon obtaining shareholders' approval, the proposed final dividend will be paid on or before 8 June 2006. A final dividend of HK$0.02 per ordinary share for the year ended 31 December 2004 was paid in 2005 and an interim dividend of HK$0.01 per ordinary share was paid in 2005.