CTF Services Limited — Interim / Quarterly Report 2004

Mar 18, 2004

Listed Company Information

NWS HOLDINGS<00659> - Results Announcement (Summary) NWS Holdings Limited announced on 18/3/2004: (stock code: 00659 ) Year end date: 30/6/2004 Currency: HKD Auditors' Report: N/A Interim report reviewed by: Both Audit Committee and Auditors (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 1/7/2003 from 1/7/2002 to 31/12/2003 to 31/12/2002 Note ('Million ) ('Million ) (Restated) Turnover : 6,542.5 6.1 Profit/(Loss) from Operations : 438.8 (46.8) Finance cost : (169) 0 Share of Profit/(Loss) of Associates : 161.5 154.1 Share of Profit/(Loss) of Jointly Controlled Entities : 553.1 107.5 Profit/(Loss) after Tax & MI : 814.2 185.8 % Change over Last Period : +338 % EPS/(LPS)-Basic (in dollars) : 0.46 0.85 -Diluted (in dollars) : 0.45 0.35 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 814.2 185.8 Interim Dividend : $0.15 Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : 14/4/2004 to 19/4/2004 bdi. Payable Date : 30/4/2004 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 and accounting policies The unaudited consolidated condensed interim accounts for the six months ended 31 December 2003 (the "interim accounts") are prepared in accordance with Statement of Standard Accounting Practice 2.125, "Interim Financial Reporting", issued by the Hong Kong Society of Accountants (the "HKSA") and Appendix 16 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The interim accounts should be read in conjunction with the 2003 annual accounts. The principal accounting policies and methods of computation used in the preparation of the condensed interim accounts are consistent with those used in the annual accounts for the year ended 30 June 2003, except that the Group has adopted the Statement of Standard Accounting Practice 2.112 ("SSAP 12"), "Income Taxes", issued by the HKSA which is effective for accounting periods commencing on or after 1 January 2003. On adoption of the revised SSAP 12, deferred taxation is provided in full, using the balance sheet 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 recognized to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. Deferred taxation is provided on temporary differences arising on investments in subsidiary companies, jointly controlled entities and associated companies, 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 previous 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 comparatives presented have been restated to conform to the changed policy. As detailed in the Condensed Consolidated Statement of Changes in Equity, opening equity at 1 July 2002 and 2003 have been reduced by HK$287.2 million and HK$307.4 million, respectively. In addition such change in accounting policy has resulted in an increase in profit attributable to shareholders for the six months ended 31 December 2002 by HK$11.1 million. In December 2003, the Hong Kong Society of Accountants ("HKSA") further clarified that depreciation of toll roads should reflect the consumption of economic benefits from the associated assets and should be either time or usage based. On the basis that the recognition principles previously adopted by the Group under the sinking fund depreciation method was by reference to the economic usage of the assets, management concluded that there is no material impact to the financial statements as a result of this further clarification from the HKSA. 2. Operating profit/(loss) Operating profit/(loss) of the Group is arrived at after crediting and charging the following: For the six months ended 31 December 2003 2002 HK$'m HK$'m Crediting:- Gross rental income from investment properties 20.5 - Less: Outgoings (5.5) - _____ ________ 15.0 - ====== ======= Charging:- Cost of inventories sold 344.6 - Depreciation - owned fixed assets 266.0 4.1 Operating lease rental expenses Land and building 48.9 0.9 Other equipment 37.2 - Other charges Loss on disposal of fixed assets 26.7 - Impairment loss on fixed assets - 35.0 26.7 35.0 ========= ========= 3. Earnings per ordinary share The calculation of basic earnings per ordinary share is based on the profit of HK$814.2 million (2002: restated profit of HK$185.8 million less preference shares dividend of HK$11.4 million) and the weighted average of 1,780.8 million (2002 restated: 206.0 million) ordinary shares in issue during the period. The diluted earnings per ordinary share for the six months ended 31 December 2003 is calculated based on 1,796.8 million ordinary shares which were the weighted average number of 1,780.8 million ordinary shares in issue during the period plus the weighted average of 16.0 million ordinary shares deemed to be issued at HK$3.725 if all outstanding options had been exercised. The diluted earnings per ordinary share for the six months ended 31 December 2002 was calculated based on 525.4 million ordinary shares which were the weighted average number of 206.0 million ordinary shares in issue during the period plus the weighted average of 319.4 million ordinary shares deemed to be issued on the conversion of all preference shares. The conversion of share options was not dilutive as the exercise price of the Company's outstanding options was higher than the average market price per ordinary share for the six months ended 31 December 2002.