Dah Sing Banking Group Limited — Earnings Release 2005

Mar 27, 2006

Listed Company Information

Listed Company Information
DAHSING BANKING<02356> - Results Announcement Dah Sing Banking Group Limited announced on 27/03/2006: (stock code: 02356 ) 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 ) (Restated) Interest Income : 3,094,884 2,228,406 Profit/(Loss) from Operations : 1,155,795 1,262,344 Finance cost : N/A N/A Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : 3,104 4,095 Profit/(Loss) after Tax & MI : 978,834 1,118,739 % Change over Last Period : -12.5 % EPS/(LPS)-Basic (in dollars) : 1.06 1.29 -Diluted (in dollars) : 1.06 1.29 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 978,834 1,118,739 Final Dividend : $0.38 $0.38 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 15/05/2006 to 19/05/2006 bdi. Payable Date : 22/05/2006 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 consolidated financial statements of the Group are required to be prepared in accordance with Hong Kong Financial Reporting Standards (" HKFRSs" which is a collective term including all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKAS") and Statements of Standard Accounting Practice ("SSAPs") and Interpretations) issued by Hong Kong Institute of Certified Public Accountants ("HKICPA"), accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance. The report complies with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The consolidated financial statements are prepared under the historical cost convention, as modified by the revaluation of properties (including investment properties), available-for-sale financial assets, financial assets and financial liabilities held for trading, financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss. The preparation of consolidated financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. 2. Changes in accounting policies The adoption of new/revised HKFRS In 2005, the Group adopted all applicable new/revised HKFRSs, which are relevant to its operations. The 2004 comparatives have been amended as required. The following sets out the key HKFRSs adopted by the Group constituting changes to the Group's accounting policies in 2005. (1). HKAS 39 Financial Instruments: Recognition and Measurement The adoption of HKAS 39 has resulted in a change in accounting policy relating to the classification of financial assets at fair value through profit or loss and available-for-sale financial assets. It has also resulted in the recognition of derivative financial instruments at fair value and the change in the recognition and measurement of hedging activities. (2). HKFRS 2 Share-based Payment The adoption of HKFRS 2 has resulted in a change in the accounting policy for share-based payments pursuant to which the fair value of the liability on cash-settled share-based compensations is determined at each reporting date by way of an option pricing model until it is settled. The changes in the fair value are taken to the income statement. As a transitional provision, retrospective application to the extent the liability is still outstanding as at 1 January 2005 is made, with corresponding restatement to 2004 comparatives. (3). HKAS-Int 21 Income Taxes - Recovery of Revalued Non-Depreciated Assets The adoption of revised HKAS-Int 21 has resulted in a change in the accounting policy relating to the measurement of deferred tax liability arising from the revaluation of investment properties. Such deferred tax liability is measured on the basis of tax consequences that would follow from recovery of the carrying amount of those assets through use. In prior years, the carrying amount of those assets was expected to be recovered through sale. 3. Basic and diluted earnings per share The calculation of basic earnings per share is based on earnings of HK$ 978,834,000 (2004: HK$1,118,739,000) and the weighted average number of 922,401,845 (2004: 864,955,785) shares in issue during the year, shown as follows: 2005 2004 Number of shares Ordinary shares in issue as at 1 January / 30 June 919,830,827 809,900,000 Effect of shares issued pursuant to public listing(Note) - 55,055,785 Effect of shares issued in lieu of dividends 2,571,018 - ---------------------------- Weighted average number of ordinary shares as at 31 December 922,401,845 864,955,785 ============================ Note: The Company was incorporated on 11 March 2004 with two fully paid subscriber's shares. On 12 June 2004, the Company issued a further 809, 899,998 shares to Dah Sing Financial Holdings Limited ("DSFH") as consideration for the acquisition of the latter's interest in various banking-related subsidiaries. On 30 June 2004, the Company issued an additional 100,100,000 shares upon completion of its initial public offering and listing on the Stock Exchange. On 19 July 2004, the Company issued a further 9,830,827 shares pursuant to the exercise of the over- allotment option by the international placing underwriters. For the purpose of the calculation of basic earnings per share for 2004, on the basis of the merger accounting method adopted, the Company is considered as if it had the reported profit accrued to it, and had 809,900,000 shares in issue throughout the period in 2004 up to the date immediately before listing, after which its total number of shares was increased to 919,830, 827. The calculation of diluted earnings per share is based on earnings of HK$ 978,834,000 (2004: HK$1,118,739,000) and the weighted average number of 922,401,845 (2004: 865,220,126) shares in issue during the year after adjusting for the effect of all dilutive potential ordinary shares as shown below: 2005 2004 Number of shares Weighted average number of ordinary shares as at 31 December 922,401,845 864,955,785 Adjustments for share option - 264,341 ------------------------------------ Weighted average number of ordinary shares for diluted earnings per share as at 31 December 922,401,845 865,220,126 ==================================== 4. Final dividend At the forthcoming annual general meeting of the Company to be held on Friday, 19 May 2006, the Directors will propose a final dividend of HK$0. 38 per share for 2005 to Shareholders whose names are on the Register of Shareholders as at the close of business on Friday, 19 May 2006. Dividend warrants will be sent to Shareholders by ordinary mail on or about Monday, 22 May 2006. 5. Closing of register of shareholders The Register of Shareholders will be closed from Monday, 15 May 2006 to Friday, 19 May 2006, both days inclusive. In order to qualify for the final dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company's Registrars, Computershare Hong Kong Investor Services Limited, 17th Floor, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:00 p.m. on Friday, 12 May 2006.