KLN Logistics Group Limited — Earnings Release 2005

Jul 5, 2005

Listed Company Information

Listed Company Information
VITASOY INT'L<00345> - Results Announcement Vitasoy International Holdings Limited announced on 05/07/2005: (stock code: 00345 ) Year end date: 31/03/2005 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2004 from 01/04/2003 to 31/03/2005 to 31/03/2004 Note ('000 ) ('000 ) Turnover : 2,379,955 2,269,422 Profit/(Loss) from Operations : 199,797 152,484 Finance cost : (9,042) (8,421) Share of Profit/(Loss) of Associates : 0 0 Share of Profit/(Loss) of Jointly Controlled Entities : 0 0 Profit/(Loss) after Tax & MI : 123,747 116,025 % Change over Last Period : +6.66 % EPS/(LPS)-Basic (in dollars) : 0.125 0.118 -Diluted (in dollars) : 0.124 0.117 Extraordinary (ETD) Gain/(Loss) : 0 0 Profit/(Loss) after ETD Items : 123,747 116,025 Final Dividend per Share : 5.7 cents 5.7 cents Special Dividend per Share : 10.0 cents 5.0 cents (Specify if with other : N/A N/A options) B/C Dates for Final and Special Dividend : 30/08/2005 to 05/09/2005 bdi. Payable Date : 15/09/2005 B/C Dates for Annual General Meeting : 30/08/2005 to 05/09/2005 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Financial highlights * After riding on the growth momentum gathered in the first half of fiscal 2004/2005 due mainly to the strong post-SARS recovery in Hong Kong and the Group's fast expansion in Australia, turnover continued to rise in the second half as growth was registered in Hong Kong, Mainland China and Australia respectively. Total turnover for the year ended 31st March, 2005 was HK$2,379,955,000, up 4.9% from HK$2,269,422,000 a year ago. * During the year under review, the initiative to exit the Refrigerated Soymilk business in the US and consolidate all production facilities at the plant in Ayer, Massachusetts proceeded smoothly as planned. As a result of that, the Group incurred a total of HK$24,782,000 as restructuring and other exit costs in North America. * For the year ended 31st March, 2005, profit attributable to shareholders was HK$123,747,000, an increase of 6.7% from HK$116,025,000 a year ago. Excluding the above restructuring costs, the net profit was HK$148,529,000. This marked a significant rebound from the 16.5% year-on -year decline in 2003/2004. 2. Earnings per share (a) Basic earnings per share The calculation of basic earnings per share is based on the consolidated profit attributable to shareholders of HK$123,747,000 (2004: HK$116,025, 000) and the weighted average number of 989,658,000 ordinary shares (2004: 983,839,000 ordinary shares) in issue during the period. (b) Diluted earnings per share The calculation of diluted earnings per share is based on the consolidated profit attributable to shareholders of HK$123,747,000 (2004: HK$116,025, 000) and the weighted average number of 996,448,000 ordinary shares (2004: 991,510,000 ordinary shares) after adjusting for the effects of all dilutive potential ordinary shares. (c) Reconciliation 2005 2004 Number of shares Number of shares '000 '000 Weighted average number of ordinary shares used in calculating basic earnings per share 989,658 983,839 Deemed issue of ordinary shares for no consideration arising from share options 6,790 7,671 ---------------------------------- Weighted average number of ordinary shares used in calculating diluted earnings per share 996,448 991,510 ---------------------------------- 3. Recently issued accounting standards The Hong Kong Institute of Certified Public Accountants has issued a number of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRSs") which are effective for accounting periods beginning on or after 1st January, 2005. The Group has not early adopted these new HKFRSs in the financial statements for the year ended 31st March, 2005. The Group has carried out an assessment of the impact of these new HKFRSs and concluded that the adoption of Hong Kong Financial Reporting Standard 2 ("HKFRS 2") "Share-based Payment" will have an impact on the Group's results of operations and financial position. At present, no employee benefit cost or obligation is recognised in the financial statements when the Group grants share options to employees to acquire shares in the Company. The equity is increased by the amount of the proceeds received when the options are exercised. Following the adoption of the new HKFRS 2, the fair value of share options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at the date of grant and spread over the period during which the employees become unconditionally entitled to the options. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest. The adoption of this new accounting standard at 31st March, 2005 would have the effect of reducing the Group's profit attributable to shareholders by HK$2,765,000. Apart from the above, the Group does not expect other new HKFRSs would have a significant impact on its results of operations and financial position.