IGG Inc — Interim / Quarterly Report 2001

Dec 14, 2000

Listed Company Information

ORIENTAL WATCH<0398> - Results Announcement Oriental Watch Holdings Limited announced on 14/12/2000: (stock code: 398) Year end date: 31/3/2001 Currency: HK$ (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2000 from 1/4/1999 to 30/9/2000 to 30/9/1999 ('000) ('000) Turnover : 744,374 687,284 Profit/(Loss) from Operations : 54,035 38,872 Finance cost : (476) (1,462) Share of Profit/(Loss) of Associates : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 45,032 31,391 % Change over Last Period : +43.5% EPS/(LPS)-Basic : 16.28 cents 11.34 cents -Diluted : 16.20 cents N/A Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 45,032 31,391 Interim Dividend per Share : 3 cents 2 cents (Specify if with other options) : - - B/C Dates for Interim Dividend : 4/1/2001 to 9/1/2001 bdi. Payable Date : 16/1/2001 B/C Dates for (-) General Meeting : - Other Distribution for Current Period : - B/C Dates for Other Distribution : - Remarks: 1. Accounting policies The condensed consolidated financial statements have been prepared in accordance with Statement of Standard Accounting Practice No. 25 "Interim financial reporting" issued by the Hong Kong Society of Accountants. The accounting policies adopted by the Group in the preparation of the condensed consolidated financial statements are consistent with those set out in the Group's annual financial statements for the year ended 31 March 2000. Certain comparative figures have been reclassified to conform with current year's presentation. 2. Segment information All of the Group's turnover and profit from operations were derived from watch trading in the People's Republic of China, including Hong Kong. The Group operated ten retail shops: eight in Hong Kong and two in Guangdong Province. 3. Finance costs Six months ended 30.9.2000 30.9.1999 HK$'000 HK$'000 Interest on bank borrowings 464 1,430 Finance lease charges 12 32 ------------------------- 476 1,462 ========================= 4. Profit before taxation Six months ended 30.9.2000 30.9.1999 HK$'000 HK$'000 Profit before taxation has been arriving at after charging: Depreciation 1,900 2,061 Unrealised loss on trading securities 380 - and after crediting: Realised gain on sale of trading securities 184 73 Interest income 2,291 588 Rental income 1,406 523 =================== 5. Taxation Six months ended 30.9.2000 30.9.1999 HK$'000 HK$'000 The charge comprises: Hong Kong Profits Tax 9,784 6,348 Taxation outside Hong Kong 156 129 --------------------- 9,940 6,477 ======================= 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. 6. Dividends The directors have determined that an interim dividend of 3 cents (1999: 2 cents) per share should be paid to the shareholders of the Company whose names appear on the register of members on 9 January 2001. The dividend will be paid on or before 16 January 2001. 7. Earnings per share The calculations of the basic and diluted earnings per share are based on the following data: Six months ended 30.9.2000 30.9.1999 HK$'000 HK$'000 Earnings Profit for the period attributable to shareholders 45,032 31,391 ======================== Number of shares Weighted average number of shares for the purpose of calculating basic earnings per share 276,686,071 276,759,200 =========== Dilutive potential shares issuable under the Company's share option scheme 1,325,153 ----------- Weighted average number of shares for the purpose of calculating diluted earnings per share 278,011,224 =========== No diluted earnings per share is presented for the six months ended 30 September 1999 as the effect of the Company's outstanding share options was anti-dilutive in that period. 8. Investment properties During the period, the Group acquired a shop on Nathan Road in Hong Kong, with an existing tenancy, at a cost of approximately HK$16,216,000 (six months ended 30 September 1999: HK$27,464,000). The Group has not carried out an independent valuation of the Group's investment properties as at 30 September 2000 as the directors are of the opinion that the carrying value of the investment properties closely approximates their open market value at that date. The addition in the current period is stated at cost and the other investment properties are stated at their open market value based on professional valuation as at 31 March 2000, the date to which the last set of the Group's audited financial statements had been made up. 9. Debtors, deposits and prepayments 30.9.2000 31.3.2000 HK$'000 HK$'000 Trade debtors 12,622 5,175 Deposits and prepayments 4,378 3,951 ------------------------ 17,000 9,126 ======================== The Group maintains a general credit policy of not more than 30 days for its established and major customers. The following is an ageing analysis of the trade debtors of the Group at the reporting date: 30.9.2000 31.3.2000 HK$'000 HK$'000 0-30 days 10,929 2,154 31-60 days 114 267 61-90 days 191 350 Over 90 days 1,388 2,404 --------------------- 12,622 5,175 ===================== 10. Creditors and accrued charges 30.9.2000 31.3.2000 HK$'000 HK$'000 Trade creditors 54,377 27,202 Other creditors and accrued charges 17,920 5,533 ------------------------- 72,297 32,735 ========================= The following is an ageing analysis of trade creditors of the Group at the reporting date: 30.9.2000 31.3.2000 HK$'000 HK$'000 0-60 days 47,217 27,060 61-90 days 800 74 Over 90 days 6,360 68 -------------------------- 54,377 27,202 ========================== 11. Share capital Number Nominal of shares value HK$'000 Authorised: Shares of HK$0.10 each 500,000,000 50,000 ======================= Issued and fully paid: At 1 April 1999 and at 1 April 2000 276,759,200 27,676 Repurchases of own shares during the period (1,106,000) (111) ---------------------- At 30 September 2000 275,653,200 27,565 ====================== During the six months ended 30 September 2000, the Company made the following repurchases of its own shares on The Stock Exchange of Hong Kong Limited: Number of shares Price paid per share Consideration repurchased Highest Lowest paid ----------- ------- ------- ------------- HK$ HK$ HK$'000 August 2000 806,000 0.85 0.81 669 September 2000 300,000 0.81 0.79 246 --------- --- 1,106,000 915 ========= === The shares were cancelled upon repurchase. The issued share capital of the Company was reduced by the nominal value of these shares. An amount of approximately HK$111,000 has been transferred from retained profits to the capital redemption reserve and the premium paid on redemption of the repurchased shares, amounting to approximately HK$804,000, has been charged to the share premium account. Save as disclosed above, there was no purchase, sale or redemption by the Company, or any of its subsidiaries, of the Company's listed shares during the six months ended 30 September 2000. 12. Capital commitments 30.9.2000 31.3.2000 HK$'000 HK$'000 Capital expenditure in respect of acquisition of property, plant and equipment contracted for but not provided with in the financial statements 1,472 286 ====================== CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from 4 January 2001 to 9 January 2001 (both days inclusive) during which period no transfer of shares will be registered. In order to qualify for the proposed interim dividend which is payable on 16 January 2001 all transfers accompanied by the relevant share certificates must be lodged with the Company's Branch Share Registrars, Secretaries Limited at 5th Floor, Wing On Centre, 111 Connaught Road Central, Hong Kong not later than 4:00 p.m. on 3 January 2001.