Matrix Holdings Limited — Earnings Release 2002

Mar 13, 2003

Listed Company Information

MATRIX HOLDINGS<01005> - Results Announcement Matrix Holdings Limited announced on 13/3/2003: (stock code: 01005 ) Year end date: 31/12/2002 Currency: HKD Auditors' Report: Modified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2002 from 1/1/2001 to 31/12/2002 to 31/12/2001 Note ('000 ) ('000 ) Turnover : 395,644 195,039 Profit/(Loss) from Operations : 116,567 38,378 Finance cost : (1,626) (2,210) 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 : 101,939 35,675 % Change over Last Period : +185.7 % EPS/(LPS)-Basic (in dollars) : 0.39 0.25 -Diluted (in dollars) : 0.18 0.06 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 101,939 35,675 Final Dividend : $0.09 NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 10/4/2003 to 15/4/2003 bdi. Payable Date : 22/4/2003 B/C Dates for Annual General Meeting : 10/4/2003 to 15/4/2003 bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. Segment Information The Group is engaged in the manufacture and trading of gifts and novelties. The nature of products, the nature of production processes and the methods used to distribute the products to customers in different geographical customers are similar. Accordingly, no analysis on the basis of business segment is presented. The Group's production facilities are located in the People's Republic of China (the "PRC") (other than Hong Kong) and the Socialist Republic of Vietnam ("Vietnam"). The Directors of the Company consider the geographical segments by location of customers as primary source of the Group's risks and returns. The Group's customers are mainly located in United States. The following table provides an analysis of the Group's segment information by geographical location of the Group's customers : 2002 United States Canada Taiwan Hong Kong Others Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales 351,796 22,943 18,018 2,887 - 395,644 ====== ====== ===== ===== ==== ======== RESULTS Segment results 136,849 6,435 5,316 1,036 - 149,636 Unallocated income and expenses (33,069) ----------- Profit from operations 116,567 Finance costs (1,626) ----------- Profit before taxation 114,941 Taxation (13,002) ----------- Net profit for the year 101,939 ======= OTHER INFORMATION Unallocated depreciation 13,949 ====== 2001 United States Canada Taiwan Hong Kong Others Consolidated HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 REVENUE External sales 161,838 5,705 233 27,143 120 195,039 ====== ==== === ===== ==== ====== RESULTS Segment results 52,208 2,174 65 3,328 120 57,895 Unallocated income and expenses (19,517) ----------- Profit from operations 38,378 Finance costs (2,210) Restructuring costs recovered 4,654 ----------- Profit before taxation 40,822 Taxation (5,147) ---------- Net profit for the year 35,675 ======= OTHER INFORMATION Unallocated depreciation 5,503 ====== 2. Other operating income 2002 2001 HK$'000 HK$'000 Interest income on bank deposits 97 521 Net exchange gain 3,478 - Profit on disposal of property, plant and equipment 176 - Others 1,894 807 _______ _______ 5,645 1,328 _______ _______ _______ _______ 3. Profit from operations 2002 2001 HK$'000 HK$'000 Profit from operations has been arrived at after charging: Auditors' remuneration - current year 601 450 - under-provision in previous year 70 23 Impairment losses recognized in respect of property, plant and equipment 451 - Loss on disposal of property, plant and equipment - 214 Depreciation of property, plant and equipment - owned assets 13,822 5,503 - assets held under a finance lease 127 - Staff costs (including wages & directors' remuneration) 66,384 34,625 _______ _______ _______ _______ 4. Restructuring costs recovered The restructuring costs recovered for the prior year represented the write back of the restructuring costs overcharged in previous year. In September 2001, the Group claimed from the former shareholder such amount which was received in February 2002. 5. Taxation 2002 2001 HK$'000 HK$'000 The charge comprises: Hong Kong Profits Tax Current year 11,650 5,147 Overprovision in prior year (48) - _______ _______ 11,602 5,147 Vietnam enterprise income tax 1,400 - _______ _______ 13,002 5,147 _______ _______ _______ _______ Hong Kong Profits Tax is calculated at 16% (2001: 16%) on the estimated assessable profit for the year. According to the Investment License granted by Vietnam authority for the Vietnam subsidiaries, the Vietnam enterprise income tax rate is 10% on estimated assessable profits during the operating period. The Vietnam subsidiaries are eligible for exemption from Vietnam enterprise income tax for four years from the first profit-making year followed by a 50% reduction in the Vietnam enterprise income tax for the next four years. Vietnam enterprise income tax is calculated at 5% (2001: 5%) on the estimated assessable profit for the year. According to the Investment License, the tax for transferring profits of Vietnam subsidiaries outside Vietnam is calculated at 3% on the profits transferred. No provision for such tax has been made as the Group currently has no intention of transferring profits of the Vietnam subsidiary outside Vietnam. Neither the Group nor the Company had any significant unprovided deferred taxation for the year or at the balance sheet date. 6. Dividends During the year, the Company paid an interim dividend of HK$0.08 (2001: nil) per share to the shareholders. The Directors have recommended the payment of a final dividend of HK$0.09 (2001: nil) per share in respect of the year ended 31st December, 2002. Together with the interim dividend paid of HK$0.08 per share, the total dividend per share for the year is HK$0.17 (2001: nil). Subject to the approval of the shareholders at the forthcoming annual general meeting, the proposed final dividend will be paid on or about 22nd April, 2003. 7. Earnings per share The calculation of basic and diluted earnings per share is based on the following data : Earnings 2002 2001 HK$'000 HK$'000 Earnings for the purposes of basic earnings per share 101,939 35,675 Effect of dilutive potential ordinary shares: Interest on convertible loan stock 1,612 2,210 _______ _______ Earnings for the purposes of diluted earnings per share 103,551 37,885 _______ _______ _______ _______ Number of shares 2002 2001 '000 '000 Weighted average number of ordinary shares for the purposes of basic earnings per share 262,366 144,720 Effect of dilutive potential ordinary shares: Convertible loan stock 322,354 440,000 _______ _______ Weighted average number of ordinary shares for the purposes of diluted earnings per share 584,720 584,720 _______ _______ _______ _______