JD Logistics, Inc. — Earnings Release 1999

Apr 7, 2000

Listed Company Information

MIDAS PRINTING<1172> - Results Announcement Midas Printing Group Limited announced on 7/4/2000: (stock code: 1172) Year end date: 31/12/1999 Currency: HKD (Audited) (Audited) Last Current Corresponding Period Period from 1/1/1999 from 1/1/1998 to 31/12/1999 to 31/12/1998 ('000) ('000) Turnover - Continuing : 472,522 420,823 - Discontinued : - - Operating Profit/(Loss) - Continuing : 36,901 31,625 - Discontinued : - - Total Operating Profit/(Loss) : 36,901 31,625 Share of Profit/(Loss) of Associated Companies : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 25,425 26,657 % Change over Last Period : -4.6% EPS/(LPS)-Basic : 10.7 cents 11.3 cents -Diluted : 10.6 cents 11.2 cents Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 25,425 26,657 Final Dividend per Share : Nil 4 cents (Specify if with other options) : - - B/C Dates for Final Dividend : N/A Payable Date : - B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : - B/C Dates for Other Distribution : N/A Remarks: 1. In the current year, the Group has adopted new Statement of Standard Accounting Practice ("SSAP") 24 issued by the Hong Kong Society of Accountants and an accounting policy of expending pre-operating expenses as incurred. In adopting SSAP 24, the Group has selected the alternative treatment for securities other than held-to-maturity securities. The accounting treatment specified by SSAP 24 has been applied retrospectively resulting in an increase of retained profits at 1st January, 1999 and profit in 1998 of approximately HK$324,000 and a decrease in profit in 1999 of the same amount. Comparative information has been restated to reflected this change in accounting policy. In prior years, pre-operating expenses were capitalised and amortised, on a straight line basis, over a period of five years from the date of commencement of commercial operations of new factories. The adoption of SSAP 1 has led to reassessment of this accounting policy. In particular, pre-operating expenses are not considered to give rise to an identifiable resource from which economic benefits are expected to flow to the Group. Accordingly, such expenditure is now recognised as an expense in the period in which it is incurred. This change in accounting policy has been applied retrospectively resulting in a decrease in the Group's net assets and retained profits and translation reserve at 1st January, 1999 by approximately HK$19,663,000, HK$19,635,000 and HK$28,000, respectively; and an increase in the Group's net profit for the year ended 31st December, 1999 by approximately HK$5,796,000 (1998: HK$5,796,000). Comparative information has been restated to reflect this change in accounting policy. 2. Taxation 1999 1998 HK$'000 HK$'000 The charge comprises: Hong Kong Profits Tax Current year 2,580 1,060 Overprovision in previous years (215) (60) Refund for the year (90) - Overseas taxation - current year 301 - ------ ------- 2,576 1,000 Deferred taxation 8,900 3,968 ------ ------- 11,476 4,968 ====== ======= Hong Kong Profits Tax is calculated at 16% (1998: 16%) of the estimated assessable profit for the year. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. The Company's subsidiaries in the People's Republic of China (the "PRC") are exempted from income tax in the PRC for two years starting from the first profit making year followed by a 50 per cent. reduction in the income tax rate in the following three years (the "Tax Reduction Period"). During the year, one of these subsidiaries was operating within the Tax Reduction Period (1998: the tax exemption period) and accordingly, was subject to income tax at a reduced rate. PRC income tax is calculated at the applicable rate relevant to that PRC subsidiary. The other subsidiaries were still operating within the tax exemption period. 3. Dividend 1999 1998 HK$'000 HK$'000 Final Dividend - nil (1998: HK 4 cents) per share, proposed - 9,461 ----- ------- 4. Earnings per share The calculation of the basic and diluted earnings per share is based on the following data: 1999 1998 HK$'000 HK$'000 Profit for the year 25,425 26,657 ====== ====== Number of ordinary shares for the purposes of basic earnings per share 236,516,068 236,516,068 Effect of dilutive potential ordinary shares in respect of share options 2,419,773 1,178,390 ----------- ------------ Number of ordinary shares for the purposes of diluted earnings per share 238,935,841 237,694,458 =========== ============