Fibocom Wireless Inc. — Earnings Release 2006

Jul 28, 2006

Listed Company Information

Listed Company Information
SINOUNION PETRO<00346> - Results Announcement Sino Union Petroleum & Chemical International Limited announced on 28/07/2006: (stock code: 00346 ) 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 : 618,708 884,347 Profit/(Loss) from Operations : 2,901 8,994 Finance cost : (3,591) (6,012) 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 : 15,567 (1,351) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : 0.0130 (0.0011) -Diluted (in dollars) : 0.0114 N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 15,567 (1,351) Final Dividend : N/A N/A per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : N/A Payable Date : N/A 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. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of Sino Union Petroleum & Chemical International Limited have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ("HKFRSs"), which is a collective term that includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKASs"), and interpretation ( Ints) issued by the Hong Kong Institute of Certified Public Accountants ( the "HKICPA"), accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. In addition, the financial statements comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The Group's books and records are maintained in Hong Kong Dollar ("HK$"), the currency in which the majority of the Group's transactions is denominated. The preparation of financial statements in conformity with HKFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The measurement basis used in the preparation of the financial statements is historical cost convention and modified by the revaluation of certain financial assets at fair value through profit or loss. Changes in accounting polices In 2006, the Group adopted the new/revised standards and interpretations of HKFRSs below, which are relevant to its operations. The 2005 comparatives have been amended and restated as required, in accordance with the relevant requirements. A summary of significant accounting policies followed by the Group and the Company in the preparation of the financial statements is set out below: 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 12 Income Taxes HKAS 14 Segment Reporting HKAS 16 Property, Plant and Equipment HKAS 17 Leases HKAS 18 Revenue HKAS 19 Employee Benefits 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 32 Financial Instruments: Disclosures and Presentation HKAS 33 Earnings per Share HKAS 36 Impairment of Assets HKAS 37 Provisions, Contingent Liabilities and Contingent Assets HKAS 38 Intangible Assets HKAS 39 Financial Instruments: Recognition and Measurement HKFRS 2 Share-based Payment HKFRS 3 Business Combinations HKFRS 5 Non-current Assets Held for Sale and Discontinued Operations The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 18, 19, 21, 23, 24, 27, 33, 37, 38 and HKFRS 5 did not result in substantial changes to the Group's accounting policies. In summary: - HKAS 1 has affected the presentation of minority interest, share of net after-tax results of associates and other disclosures. - HKASs 2, 7, 8, 10, 12, 14, 16, 18, 19, 23, 27, 33 and 37 had no material effect on the Group's policies. - 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 of the Group entities have the same functional currency as the presentation currency for respective entity financial statements. - HKAS 24 has affected the identification of related parties and some other related-party disclosures. The adoption of the above HKFRSs has no material impact on the accounting polices and the results and financial position of the Group, except for HKAS 17, HKAS 32, HKAS 36, HKAS 38, HKAS 39, HKFRS 3 and HKFRS 5, details of which are set in Note 2 to the financial statements in the annual report. Effect on the consolidated assets and liabilities as at 31 March 2005 and 31 March 2006 HKAS 17 HKAS 39 HKFRS 3 Financial Business Leases Instruments Combinations Total HK$'000 HK$'000 HK$'000 HK$'000 At 31 March 2005 Decrease in other investments - (7,967) - (7,967) Increase in financial assets at fair value through profit or loss - 7,967 - 7,967 Decrease in property, plant and equipment 11,587 - - 11,587 Increase in interest in land use rights (11,587) - - (11,587) Decrease in accumulated amortisation - - (1,179) (1,179) Decrease in goodwill - - 1,179 1,179 Decrease in convertible bond - (1,759) - (1,759) Increase in convertible bond interest payable - 71 - 71 _________________________________________________________________ - (1,688) - (1,688) ================================================================= At 31 March 2006 Increase in convertible bond interest payable - 1,252 - 1,252 _________________________________________________________________ - 1,252 - 1,252 ================================================================= Effect on the balance of equity as at 1 April 2005 HKAS 39 Financial Instruments HK$'000 Increase in convertible bond reserve 2,017 ===== There is no effect on the balance of equity as at 1 April 2004 Effect on the consolidated income statement for the year ended 31 March 2005 and 2006 HKAS 39 Financial Instruments Year ended 31 March 2005 HK$'000 Increase in finance costs 329 ====== Increase in basic loss per share HK 0.03cents ============= Decrease in diluted loss per share N/A Year ended 31 March 2006 Increase in finance costs 923 ===== Decrease in basic earnings per share HK 0.08 cents ============== Decrease in diluted earnings per share HK 0.14 cents =============== 2. PROFIT FROM OPERATING ACTIVITIES The Group's profit from operating activities is arrived at after charging: 2006 2005 HK$'000 HK$'000 (Restated) Cost of inventories sold 588,773 828,488 Auditors' remuneration 400 400 Depreciation 2,117 6,014 Amortisation of goodwill - 1,179 Provision on impairment loss of trade receivables - 3,773 Minimum lease payments under operating leases in respect of rented premises 1,320 1,691 Staff costs (including Directors' remuneration) Salaries and wages 6,049 10,270 Mandatory provident fund contributions 124 148 ========================= and after crediting: Gain on disposal of property, plant and equipment 772 62 Gain on disposal of subsidiaries 18,638 112 Exchange gains, net 38 18 ========================= The cost of inventories sold includes HK$ 2,618,000 (2005: HK$5,699,000) relating to staff costs and depreciation, which are also included in the respective total amounts disclosed separately above for each of these types of expenses. 3. EARNINGS/(LOSS) PER SHARE (a) Basic earnings/(loss) per share 2006 2005 HK$'000 HK$'000 (Restated) Earnings/(loss) attributable to equity holders of the Company 15,567 (1,351) ========================= Attributable to: Continuing operation 605 4,272 Discontinued operation 14,962 (5,623) ___________________________ 15,567 (1,351) ========================== No. of shares No. of shares '000 '000 Weighted average number of ordinary shares in issue 1,197,000 1,197,000 ============================== Basic earnings/(loss) per share - for profit/(loss) for the year HK1.30 cents (HK0.11 cents) ============================== - for profit from continuing operation HK0.05cents HK0.36cents ============================== - for profit/(loss) from discontinued operation HK1.25 cents (HK0.47 cents) ============================== (b) Diluted earning/(loss) per share (i) Profit attributable to ordinary equity holders of the Company - diluted 2006 2005 HK$'000 HK$'000 (Restated) Profit/(loss) attributable to equity holders 15,567 (1,351) Effective interest on liability component of convertible bond 923 329 __________________________ Profit/(loss) attributable to equity holders 16,490 (1,022) ========================== (ii) Weighted average number of ordinary shares - diluted 2006 2005 No. of shares No. of shares '000 '000 (Restated) Weighted average number of ordinary shares at 31 March 1,197,000 1,197,000 Adjustments for - assumed conversion of convertible bond 239,402 74,772 - assumed exercise of share options 14,413 15,684 __________________________ Weighted average number of ordinary shares at 31 March 1,450,815 1,287,456 ========================== Diluted profit/(loss) per share - for profit for the year HK1.14 cents N/A ==================== - for profit from continuing operation N/A N/A ===================== - for profit from discontinued operation HK1.03 cents N/A ======================