GoFintech Quantum Innovation Limited — Earnings Release 2006

Jul 26, 2006

Listed Company Information

Listed Company Information
NEW TIMES GROUP<00166> - Results Announcement New Times Group Holdings Limited announced on 26/07/2006: (stock code: 00166 ) 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 : 5,400 5,024 Profit/(Loss) from Operations : (1,471) (16,987) Finance cost : (967) (464) 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 : (2,892) (17,909) % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.007) (0.04) -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (2,892) (17,909) Final Dividend : NIL NIL 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. BASIS OF PRESENTATION The consolidated financial statements of the company have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRS") and Hong Kong Accounting Standards ("HKAS") and interpretations ("HKAS-Int") (Collectively the "HKFRS") issued by the Hong Kong Institute of Certified Public Accountants (" HKICPA"). The consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of investment properties and financial assets at fair value through profit or loss at fair value. 2. ACCOUNTING POLICIES In 2005, the Group adopted the new/revised HKFRSs below, which are relevant to its operations. The comparative figures 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 12 Income Taxes HKAS 16 Property, plant and equipment HKAS 17 Leases HKAS 18 Revenue HKAS 19 Employee Benefits HKAS 21 The effect 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: Disclosure and Presentation HKAS 33 Earning 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 HKAS 39 (Amendment) Transition and Initial Recognition of Financial Assets and Financial Liabilities HKAS 40 Investment Property HKFRS 2 Share-based Payment HKFRS 3 Business combination HKFRS 5 Non-current Assets Held for Sale and Discontinued HKAS-Int 12 Consolidation-Special Purpose Entities HKAS-Int 12 (Amendment) Scope of HKAS-Int 12 Consolidation-Special Purpose Entities HKAS-Int 15 Operating Leases-Incentives HKAS-Int 21 Income taxes-Recovery of Revalued Non- Depreciable assets The overall effects of the adoption of these new/revised HKFRSs are to decrease the opening equity as at 1 April 2005 and 2004 by HK$367,000 and HK$256,000 respectively and to decrease the loss for the year ended 31 March 2005 by HK$361,000. The major changes in the Group's significant accounting policies or the presentation of financial statements as a result of the adoption of these new/ revised HKFRS are summarised as follows: (a.) HKAS 1 and HKAS 27 The adoption of HKAS 1 and HKAS 27 has mainly resulted in the following presentational change in the Group's financial statements: - minority interests are now required to be shown within the Group's equity. On the face of the consolidated income statement, minority interests are presented as an allocation of the total profit or loss for the year; and - intangible assets are now required to be presented on the face of balance sheet. (b.) HKAS 17 The adoption of revised HKAS 17 has resulted in a change in an accounting policy relating to the reclassification of leasehold land from properties to operating leases prepayments. The up-front prepayments made for the leasehold land are initially stated at cost and expensed in the income statement on a straight-line basis over the period of the lease or when there is impairment, the impairment is expensed in the income statement. In prior years, the leasehold land was stated at revalued amount less accumulated amortization and impairment losses. This change in accounting policy has been applied retrospectively so that the comparative figures presented have been restated to conform with the changed policy. The effect on the adoption of the HKAS 17 is to increase and decrease the opening equity as at 1 April 2005 and 2004 by HK$105,000 and HK$256,000 respectively and to decrease the loss for the year ended 31 March 2005 by HK$361,000. (c.) HKASs 32 and 39 The adoption of HKAS 32 "Financial Instruments: Disclosure and Presentation" and HKAS 39 " Financial Instruments: Recognition and Measurement" has resulted in a change in the accounting policy relating to the recognition, measurement, derecognition and disclosure of financial assets and liabilities. In accordance with provisions of HKAS 39, the Group reclassified their investments into loans and receivables and financial assets at fair value through profit or loss. Loans and receivables are carried initially at fair value and subsequently at amortised cost less any provision for impairment. Financial assets at fair value through profit or loss are carried at fair value with any unrealized gains and losses included in the income statement in the period in which they arise. In prior years, investments of the Group were included in short term investments which were stated fair values. HKAS 39 does not permit to recognise, derecognize and measure financial assets and liabilities on a retrospective basis. Accordingly, the Group redesignates all investments into loans and receivables and financial assets at fair value through profit or loss as at 1 April 2005. (d.) HKAS 40 The adoption of HKAS 40 "Investment Property" has resulted in a change in the accounting policy whereby the changes in fair values of investment properties are recorded in the income statement. In prior years, the increases in fair value were credited to the investment properties revaluation reserve. Decreases in fair value were first set off against increases on earlier valuations on a portfolio basis and thereafter expensed in the income statement. This change was adopted by increasing the opening balance of retained profits as of 1 April 2005 by HK$2,527,000 and decreasing the investment property revaluation reserve by HK$2,999,000 respectively. Comparative amounts have not been restated as permitted under the transitional provisions of HKAS 40. (e.) HKFRS 2 The adoption of HKFRS 2 has resulted in a change in the accounting policy for share-based payments. The Group operates an equity-settled, share-based compensation plan. Until 31 March 2005, the provision of share options granted by the Company to the Group's employees did not result in expenses in the income statement. With effect from 1 April 2005, the fair value of the employee services received in exchange for the grant of the share options of the Company is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of the share options granted by the Company. As all the share options previously granted by the Company was vested on or before 1 April 2005, accordingly, no adjustment is made in the Group's financial statements pursuant to the transitional provisions as set out in HKFRS 2. (f.) HKFRS 3 The adoption of HKFRS 3 has resulted in a change in the accounting policy for goodwill and negative goodwill. In prior years, goodwill or negative goodwill on acquisitions of subsidiaries, jointly controlled entities or associates on or after 1 January 2001 was: - Amortised on a straight-line basis over its estimated useful life of not exceeding 20 years; and - Assessed for impairment on goodwill at each balance sheet date. In accordance with the provisions of HKFRS 3: - The Group ceased amortisation of goodwill with effect from 1 April 2005; - Accumulated amortisation of goodwill as at 31 March 2005 has been eliminated with a corresponding decrease in the cost of goodwill; - Goodwill is tested annually for impairment, as well as when there is indication of impairment; and - The carrying amount of negative goodwill as at 31 March 2005 is derecognised and reflected as an adjustment to the Group's opening equity as at 1 April 2005. The adoption of HKFRS 3 does not have any significant impact to the Group. (g.) HKFRS 5 Pursuant to HKFRS 5, the Group's interest in Ideal Far East Limited, a wholly owned subsidiary of the Company were classified as discontinued operation subsequent to the cessation of precision components processing equipment trading business in 2005 as detailed in note 7 below. The adoption of HKFRS 5 has resulted in certain changes in presentation of financial statements. A single amount on the face of the income statement comprising the aggregate of the post-tax loss relating to discontinued operation was disclosed. In prior years, results of discontinued operations were incorporated in the individual lines on the face of the income statement. An analysis of the revenue, expenses, pre-tax loss of discontinued operation was also disclosed in the notes to the financial statement. The adoption of HKASs 2, 7, 8, 10, 12, 16, 18, 19, 21, 23, 24, 27, 33, 36, 37, 38, HKAS-Int 12, 15 and 21 did not result in any significant change to the Group's significant accounting policies and the presentation of the Group's financial statements. 3. PROFIT /(LOSS) BEFORE TAXATION INCLUDED THE FOLLOWING ITEMS 2006 2005 ______________________ $'000 $'000 After charging - Loss on disposal of short term listed investment, net - (5,415) Loss on disposal of financial assets at fair value through profit and loss (1,408) - Amortization of goodwill - (2,951) Unrealized loss on short term listed investment - (4,454) Write-back of provision for legal and professional costs - 409 ======================== 4. TURNOVER AND PROFITS FROM CONTINUING AND DISCONTINUED OPERATIONS 2006 __________________________________________________________________________ Continuing operations Discontinued operations ____________________________________________ __________________________ Property Provision of Trading of precision investment Financial components services Total processing equipment __________ _____________ _____________ __________________________ HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue: Sales and services to external customers 4,542 858 5,400 - Other revenue 182 121 303 - __________ _____________ _____________ __________________________ Total 4,724 979 5,703 - ========== ============= ============= ========================== Segment results 2,316 728 3,044 (1,139) ========== ============= ========================== Fair value loss on investment properties (943) Interest income, dividend income and unallocated revenue 2,375 Unallocated expenses (4,808) _____________ Operating loss (332) Finance costs (967) _____________ Loss before income tax from continuing operations before tax (1,299) Income tax expenses (454) ______________ Loss for the year from continuing operations (1,753) Loss for the year from discontinued operations (1,139) ______________ Loss for the year (2,892) ============== 2005(Restated) __________________________________________________________________________ Continuing operations Discontinued operations ____________________________________________ __________________________ Property Provision of Trading of precision investment Financial components services Total processing equipment __________ _____________ _____________ __________________________ HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue: Sales and services to external customers 4,095 881 4,976 48 Other revenue - 79 79 1,070 __________ _____________ _____________ __________________________ Total 4,095 960 5,055 1,118 ========== ============ ============= ========================== Segment results 2,448 937 3,385 (486) ========== ============ ========================== Write-back of provision for legal and professional costs 409 Interest income, dividend income and unallocated revenue 1,098 Unallocated expenses (21,393) ______________ Operating loss (16,501) Finance costs (464) ______________ Loss before income tax from continuing operations before tax (16,965) Income tax expenses (458) ______________ Loss for the year from continuing operations (17,423) Loss for the year from discontinued operations (486) ______________ Loss for the year (17,909) ============== 5. LOSS PER SHARE The calculation of basic loss per share was based on loss attributable to shareholders for the year of HK$2,892,000 (2005: HK$17,909,000(as restated)) and on 433,302,000 (2005: 433,302,000) ordinary shares in issue during the year. Details of basic loss per share are analysed as follows: 2006 2005 _____ _____ HK cents HK cents (Restated) Basic loss per share - continuing operations (0.41) (4.02) - discontinued operation (0.26) (0.11) ________ ________ (0.67) (4.13) ======= ======== As there are no dilutive potential ordinary shares as at 31 March 2006 and 2005, the dilutive loss per share is equal to the basic loss per share.