KLN Logistics Group Limited — Earnings Release 2003

Dec 4, 2002

Listed Company Information

VITASOY INT'L<00345> - Results Announcement (Summary) Vitasoy International Holdings Limited announced on 4/12/2002: (stock code: 345) Year end date: 31/3/2003 Currency: HKD Auditors' Report: N/A Review of Interim Report by: Both Audit Committee and Auditors (Unaudited) (Unaudited) Last Current Corresponding Period Period from 1/4/2002 from 1/4/2001 to 30/9/2002 to 30/9/2001 ('000) ('000) Turnover : 1,157,727 1,103,522 Profit/(Loss) from Operations : 104,821 71,305 Finance cost : (5,169) (8,394) Share of Profit/(Loss) of Associates : (273) (3,207) Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 79,519 47,573 % Change over Last Period : +67.15% EPS/(LPS)-Basic : 8.2 cents 4.9 cents -Diluted : 8.1 cents 4.9 cents Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 79,519 47,573 Interim Dividend per Share : 2.8 cents 2.8 cents (Specify if with other options) : - - B/C Dates for Interim Dividend : 23/12/2002 to 24/12/2002 bdi. Payable Date : 31/12/2002 B/C Dates for (-) General Meeting : N/A Other Distribution for Current Period : - B/C Dates for Other Distribution : - Remarks: 1. Profit after Taxation & MI is arrived at after crediting the gain on disposal of associate The equity interest in Sodexho (Hong Kong) Limited, our associate, was sold in August 2002 for a consideration of HK$14,000,000, yielding a gain on disposal of HK$2,485,000. 2. Earnings per share (a) Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to shareholders of HK$79,519,000 (2001 Restated: HK$47,573,000) and the weighted average number of 973,656,000 ordinary shares (2001: 974,417,000 ordinary shares) in issue during the period. (b) Diluted earnings per share The calculation of diluted earnings per share is based on the profit attributable to shareholders of HK$79,519,000 (2001 Restated: HK$47,573,000) and the weighted average number of 978,682,000 ordinary shares (2001: 976,113,000 ordinary shares) after adjusting for the effects of all dilutive potential ordinary shares. (c) Reconciliation Six months ended 30th September, 2002 2001 Number of share Number of shares '000 '000 Weighted average number of ordinary shares used in calculating basic earnings per share 973,656 974,417 Deemed issue of ordinary shares for no consideration arising from share options 5,026 1,696 Weighted average number of ordinary shares used in calculating diluted earnings per share 978,682 976,113 ======== ======== 3. Adoption of new accounting standards in Hong Kong The following new Statements of Standard Accounting Practice ("SSAPs") issued by the Hong Kong Society of Accountants ("HKSA"), which became effective for accounting periods beginning on or after 1st January, 2002, were adopted for the preparation of the Group's interim financial report for the six months ended 30th September, 2002: - SSAP 34 "Employee benefits" - SSAP 1 (revised) "Presentation of financial statements" - SSAP 15 (revised) "Cash flow statements" - SSAP 11 "Foreign currency translation" (a) Adoption of SSAP 34 "Employee benefits" (i) Accrued liabilities on unused annual leave Prior to the issuance of SSAP 34, the Group did not provide for the liabilities in respect of its staff's annual leave entitlement. SSAP 34 requires that obligations in respect of this entitlement should be accrued as soon as services are rendered. The Group has adopted this new accounting policy retrospectively and accordingly restated the opening balances of the retained profits as at 1st April, 2001 and 2002. The previously reported profit for the six months ended 30th September, 2001 and for the year ended 31st March, 2002 have been adjusted to reflect movements in the accrued annual leave balance during the periods. These effects are summarised as follows: Net movement in entitlement Balance 6 months 6 months Balance as at ended ended As at 1st April, 2001 30th September,2001 31st March, 2002 1st April, 2002 HK$'000 HK$'000 HK$'000 HK$'000 Retained profits as previously reported 588,455 597,943 Prior period adjustment in respect of unused annual leave entitlements (8,214) (1,153) 738 (8,629) -------- -------- Retained profits as restated 580,241 589,314 ======= ======== (ii) Post-employment benefits - retirement gratuities Prior to the issuance of SSAP 34, the Group recognised the obligation in respect of retirement gratuities and long service payments following the methodology and accounting treatments which are in accordance with those prescribed in SSAP 34. Therefore the adoption of SSAP 34 has no material effect on the prior year financial statements, and no prior period adjustment has been made in this respect. (b) Adoption of SSAP 1 (revised) "Presentation of financial statements" In order to comply with the revised requirements of SSAP 1 (revised), the Group adopts the new statement "Consolidated statement of changes in equity" which replaces the "Consolidated statement of recognised gains and losses" included in previous interim financial reports and annual financial statements. The new statement reconciles the movement of key components of the shareholders' fund, including share capital, reserves and retained profits, from the beginning to end of a period. (c) Adoption of SSAP 15 (revised) "Cash flow statements" In prior years, cash and cash equivalents in the condensed consolidated cash flow statement included bank overdrafts and bank advances repayable within three months from the date of advance. With effect from 1st April, 2002, in order to comply with SSAP 15 (revised), cash and cash equivalents no longer include bank advances other than bank overdrafts which are repayable on demand and which form an integral part of the Group's cash management. In addition, the format of the condensed consolidated cash flow statement has been revised to follow the new requirements of SSAP 15 (revised). Comparative figures for the condensed consolidated cash flow statement have been adjusted accordingly. (d) Adoption of SSAP 11 "Foreign currency translation" In prior years, the financial statements of overseas subsidiaries were translated into Hong Kong dollars at the rates of exchange ruling at the balance sheet date. With effect from 1st April, 2002, the Group adopted a new accounting policy of translating the income statements of overseas subsidiaries at average rates for the period, in order to comply with SSAP 11 (revised). The adoption of this SSAP has no material effect on the prior year financial statements, therefore no prior period adjustment has been made. 4. Comparative figures Comparative figures have been restated and reclassified based on the adoption of new accounting standards as set out in remark 3.