Dynamic Holdings Limited — Earnings Release 2004

Oct 21, 2004

Listed Company Information

Listed Company Information
DYNAMIC HOLD<00029> - Results Announcement Dynamic Holdings Limited announced on 21/10/2004: (stock code: 00029 ) Year end date: 30/06/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2003 from 01/07/2002 to 30/06/2004 to 30/06/2003 Note ('000 ) ('000 ) Turnover : 410,257 294,752 Profit/(Loss) from Operations : 49,186 11,512 Finance cost : (1,966) (1,270) 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 : 35,455 (137) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.162 (0.001) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 35,455 (137) Final Dividend : 2 cents 2 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 16/12/2004 to 22/12/2004bdi. Payable Date : 14/01/2005 B/C Dates for Annual General Meeting : 16/12/2004 to 22/12/2004bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Explanation of substantial change in profit from operations and profit after taxation and minority interests For the year ended 30th June, 2004, the profit from operations of the Company and its subsidiaries (the "Group") surged by about 327% to HK$49,186,000 as compared with that of the previous year. The marked improvement is principally attributable to the booking of profit from property sales of the last two towers of Chaoyang Garden Phase II (The Sun Crest) in Beijing following the issue of occupational permit in October 2003, whilst no further provision of deficit arising from revaluation of the Group's investment properties in Hong Kong was deemed necessary for the year under review. Hence, the Group's net profit after taxation and minority interests amounted to HK$35,455,000 for the year, as against the loss of HK$137,000 for the previous year. 2. Basic and diluted earnings per share The calculation of basic earnings per share is based on net profit for the year of HK$35,455,000 and on 219,103,681 ordinary shares in issue throughout the year. Diluted earnings per share is not shown as there was no dilution effect on the earnings per share in the year. 3. Explanation for change of the last corresponding results For the year ended 30th June, 2004, the Group has adopted, for the first time, the revised Statement of Standard Accounting Practice ("SSAP") 12 "Income taxes" ("SSAP 12 (Revised)") issued by the Hong Kong Institute of Certified Public Accountants. The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. In previous years, partial provision was made for deferred tax using the income statement liability method, i.e. a liability was recognised in respect of timing differences arising, except where those timing differences were not expected to reverse in the foreseeable future. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. In the absence of any specific transitional requirements in SSAP 12 (Revised), the new accounting policy has been applied retrospectively. Comparative amounts have been restated accordingly. As a result of this change in accounting policy, the Group's retained profits has been decreased by HK$7,999,000 at 1st July, 2002. The change has resulted in a decrease in the Group's profit for the year of HK$2,205,000 (2003: an increase in the Group's profit of HK$2,249,000).