IGG Inc — Earnings Release 2002

Jul 18, 2002

Listed Company Information

ORIENTAL WATCH<00398> - Results Announcement (Summary) Oriental Watch Holdings Limited announced on 18/7/2002 : (stock code: 398) Year end date: 31/3/2002 Currency: HKD Auditors' Report: Unqualified Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/4/2001 from 1/4/2000 to 31/3/2002 to 31/3/2001 ('000) ('000) Turnover : 1,713,574 1,598,968 Profit/(Loss) from Operations : 97,905 116,927 Finance cost : (1,009) (973) 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 : 79,242 97,327 % Change over Last Period : -18.6% EPS/(LPS)-Basic : 28.8 cents 35.3 cents -Diluted : 28.5 cents 35.1 cents Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 79,242 97,327 Final Dividend per Share : 4.5 cents 6 cents (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : 27/8/2002 to 30/8/2002 bdi. Payable Date : 18/9/2002 B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1. Adoption of new and revised Statements of Standard Accounting Practice As explained in the interim report for the six months ended 30 September 2001, the Group has adopted a number of new and revised Statements of Standard Accounting Practice issued by the Hong Kong Society of Accountants which became effective during the year. Following such adoption, certain previously reported comparative figures have been restated and additional or revised disclosures are also made. Details of these changes are set out in the annual report. 2. Gain on disposal of investment properties Included in the gain of HK$5,170,000 is an amount of HK$2,870,000 which has been released to the income statement from the Group's investment property revaluation reserve. 3. Profit from operations 2002 2001 HK$'000 HK$'000 Profit from operations has been arrived at after charging: Depreciation 4,427 4,660 and after crediting: Interest income 2,186 4,268 Realised gains on listed trading securities - 369 4. Taxation 2002 2001 HK$'000 HK$'000 The charge comprises: Hong Kong Profits Tax - charge for the year 16,317 18,747 - (over)underprovision in prior years (173) 310 ----------------------- 16,144 19,057 Taxation outside Hong Kong 262 229 Deferred taxation (credit) charge (17) 61 ----------------------- 16,389 19,347 ====== ====== Hong Kong Profits Tax is calculated at 16% on the estimated assessable profits of the Group which are derived from Hong Kong. Taxation outside Hong Kong is calculated at the rate prevailing in the respective jurisdiction outside Hong Kong in which the Group operates. 5. Dividends 2002 2001 HK$'000 HK$'000 Proposed final dividend of 4.5 cents (2001: 6 cents) per share 12,386 16,515 Interim dividend paid of 2.5 cents (2001: 3 cents) per share 6,881 8,270 ______ ______ 19,267 24,785 ====== ====== The final dividend for the year ended 31 March 2002, which has been proposed by the directors, is subject to approval by shareholders in the forthcoming annual general meeting. The amount is calculated on the basis of the proposed dividend rate and the 275,253,200 shares in issue at the date of approval and authorization for issue of these financial statements by the directors. 6. Earnings per share The calculations of the basic and diluted earnings per share are based on the following data: 2002 2001 HK'000 HK$'000 Earnings: Profit for the year attributable to shareholders 79,242 97,327 ====== ======= Number of Number of shares shares Weighted average number of shares for the purpose of calculating basic earnings per share 275,253,200 275,959,184 Potential dilutive shares issuable under the Company's share option scheme 2,872,972 1,269,373 __________ __________ Weighted average number of shares for the purpose of calculating diluted earnings per share 278,126,172 277,228,557 ========== ========== 7. Segment Information (i) Business segments The Group's turnover and profit from operations are derived from watch trading which is the primary segment for management purposes. All assets and liabilities and additions to tangible and intangible assets are attributable to the watch trading business. (ii) Geographical segments The Group's operations are located in the Special Administrative Region of Hong Kong and other parts of the People's Republic of China (the "PRC"). The following is an analysis of the sales and contribution of the Group's watch trading business by geographical market: Profit (loss) Sales from operations 2002 2001 2002 2001 HK$'000 HK$'000 HK$'000 HK$'000 Kong Kong 1,669,858 1,589,904 96,408 117,874 Other parts of the PRC 43,716 9,064 (1,573) (947) ________ ________ ________ _______ Profit from watch trading 1,713,574 1,598,968 94,835 116,927 ========= ========= Gain on disposal of investment properties 5,170 - Deficit on revaluation of an investment property (2,100) - _______ _______ Profit from operations 97,905 116,927 ======= ======= The assets employed in the PRC are less than ten percent of the assets of the Group.