Dragon Mining Limited — Earnings Release 2006

Jul 21, 2006

Listed Company Information

Listed Company Information
SAMSON PAPER<00731> - Results Announcement Samson Paper Holdings Limited announced on 21/07/2006: (stock code: 00731 ) Year end date: 31/03/2006 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2005 from 01/04/2004 to 31/03/2006 to 31/03/2005 Note ('000 ) ('000 ) Turnover : 3,120,108 2,944,408 Profit/(Loss) from Operations : 99,692 103,977 Finance cost : (53,587) (31,714) Share of Profit/(Loss) of Associates : (5,402) 2,499 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 30,449 56,584 % Change over Last Period : -46 % EPS/(LPS)-Basic (in dollars) : 0.071 0.132 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 30,449 56,584 Final Dividend : $0.01 $0.03 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 19/09/2006 to 25/09/2006 bdi. Payable Date : 03/10/2006 B/C Dates for Annual General Meeting : 19/09/2006 to 25/09/2006 bdi. 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 accounts have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants. The consolidated accounts have been prepared under the historical cost convention, as modified by the revaluation of buildings, financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss, which are carried at fair value. The adoption of new/revised HKFRSs In 2006, the Group adopted the new/revised Hong Kong Accounting Standards ("HKASs") and interpretations of HKFRSs below, which have not been early adopted by the Group for the preparation of the 2005 consolidated accounts and are relevant to its operations. The 2005 comparatives have been amended as required, in accordance with the relevant requirements. HKAS 1 Presentation of Financial Statements HKAS 2 Inventories HKAS 7 Cash Flow Statements HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors HKAS 10 Events after the Balance Sheet Date HKAS 16 Property, Plant and Equipment HKAS 17 Leases HKAS 21 The Effects of Changes in Foreign Exchange Rates HKAS 23 Borrowing Costs HKAS 24 Related Party Disclosures HKAS 27 Consolidated and Separate Financial Statements HKAS 28 Investments in Associates HKAS 32 Financial Instruments: Disclosure and Presentation HKAS 33 Earnings Per Share HKAS 36 Impairment of Assets HKAS 39 Financial Instruments: Recognition and Measurement HKAS 39 (Amendment) Transition and Initial Recognition of Financial Assets and Financial Liabilities HKFRS 3 Business Combination The adoption of HKAS 1,2,7,8,10,16,21,23,24,27,28 and 33 did not result in substantial changes to the Group's accounting policies. In summary: HKAS 1 has affected the presentation of minority interests, share of net after-tax results of associated companies and other disclosures. HKAS 21 had no material effect on the Group's policy. The functional currency of each of the consolidated entities has been re-evaluated based on the guidance to the revised standard. All the Group entities have the same functional currency as the presentation currency for respective entity accounts. HKAS 2,7,8,10,16,23,24,27,28 and 33 had no material effect on the Group's policies. The adoption of revised HKAS 17 has resulted in a change in the accounting policy relating to the reclassification of leasehold land and land use rights from property, plant and equipment to operating leases. The up-front prepayments made for the leasehold land and land use rights with a carrying value of HK$71,415,000 as at 31 March 2006 (31 March 2005: HK$73,098,000) are reclassified as prepaid premium for land leases payments instead of property, plant and equipment, which are expensed in the consolidated profit and loss account on a straight-line basis over the period of the leases. The adoption of HKAS 32 and HKAS 39 has resulted in the recognition of derivative financial instruments at fair value and the change in the recognition and measurement of hedging activities. The adoption of HKFRS 3 and HKAS 36 results in a change in the accounting policy for goodwill. Until 31 March 2005, goodwill was: - Amortised on a straight line basis over a period of 10 years; and - Assessed for impairment at each balance sheet date. In accordance with the provisions of HKFRS 3 and HKAS 36: - The Group ceased amortisation of goodwill from 1 April 2005; - Accumulated amortisation as at 31 March 2005 has been eliminated with a corresponding decrease in the cost of goodwill; - From the year ended 31 March 2006 onwards, goodwill is tested annually for impairment, as well as when there is indication of impairment. Effect of the above changes in accounting policies on profit after taxation for the year ended 31 March 2006: Attributable to equity holders HK$'000 Increase in profit after taxation-HKFRS 3 and HKAS 36 709 Effect of the above changes in accounting policies on balance sheet as at 31 March 2006 and 31 March 2005: 31 March 2006 31 March 2005 HKAS 17 HKAS 32 & 39 HKFRS3 & HKAS 17 HKAS 32 & 39 HKFRS3 & HKAS 36 HKAS 36 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Decrease in property, plant and equipment 71,415 - - 73,098 - - Increase in prepaid premium on land leases 71,415 - - 73,098 - - Increase in retained earnings 4,636 - - - - - Decrease in deferred tax liabilities 4,636 - - - - - Increase in other financial assets at fair value through profit or loss - 1,798 - - - - Increase in other financial liabilities at fair value through profit or loss - 703 - - - - Decrease in other receivable - 1,095 - - - - Increase in interests in associated companies - - 709 - - - The following new Standards or Interpretations or Amendments that have been issued but are not yet effective were not early-adopted. The management are in the process of assessing the impact. HKAS 1 (Amendment) Presentation of Financial Statements: Capital Disclosures HKAS 19 (Amendment) Actuarial Gains and Losses, Group Plans and Disclosures HKAS 21 (Amendment) Net Investment in a Foreign Operation HKAS 39 (Amendment) Cash Flow Hedge Accounting of Forecast Intragroup Transactions HKAS 39 (Amendment) The Fair Value Option HKAS 39 and HKFRS 4 (Amendment) Financial Guarantee Contracts HKFRS 1 (Amendment) First-time Adoption of Hong Kong Financial Reporting Standards HKFRS 6 Exploration for and Evaluation of Mineral Resources HKFRS 7 Financial Instruments: Disclosures HKFRS-Int 4 Determining whether an Arrangement contains a Lease HKFRS-Int 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds HK(IFRIC)-Int 6 Liabilities arising from Participating in Specific Market-Waste Electrical and Electronic Equipment HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29 Financial Reporting in Hyperinflationary Economies HK(IFRIC)-Int 8 Scope of HKFRS 2 HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives 2. EARNINGS PER SHARE The calculation of basic earnings per share is based on the audited consolidated profit attributable to shareholders of the Company of HK$30,449,000 (2005: HK$56,584,000) and on the weighted average number of 429,258,039 shares (2005: 429,258,039 shares) of the Company in issue during the financial year.