Perfectech International Holdings Limited — Earnings Release 2001

Apr 23, 2002

Listed Company Information

KIU HUNG INT'L<00381> - Results Announcement (Summary) Kiu Hung International Holdings Limited announced on 23/4/2002: (stock codes: Ord: 381 & War: 564) Year end date: 31/12/2001 Currency: HKD Auditors' Report: Neither Review of Interim Report by: N/A (Audited) (Audited) Last Current Corresponding Period Period from 1/1/2001 from 1/1/2000 to 31/12/2001 to 31/12/2000 ('000) ('000) Turnover : 122,808 139,344 Profit/(Loss) from Operations : 19,808 52,965 Finance cost : (2,431) (4,251) Share of Profit/(Loss) of Associates : - - Share of Profit/(Loss) of Jointly Controlled Entities : - - Profit/(Loss) after Tax & MI : 13,458 41,438 % Change over Last Period : -68% EPS/(LPS)-Basic : 3.1 cents 12.6 cents -Diluted : 3.1 cents N/A Extraordinary (ETD) Gain/(Loss) : - - Profit/(Loss) after ETD Items : 13,458 41,438 Final Dividend per Share : 2 cents NIL (Specify if with other options) : N/A N/A B/C Dates for Final Dividend : 22/5/2002 to 28/5/2002 bdi. Payable Date : 5/6/2002 B/C Dates for Annual General Meeting : 22/5/2002 to 28/5/2002 bdi. Other Distribution for Current Period : N/A B/C Dates for Other Distribution : N/A Remarks: 1. Basis of presentation and consolidation The Company was incorporated in the Cayman Islands on 21 November 2000 as an exempted company with limited liability under the Companies Law (Revised) of the Cayman Islands. Pursuant to a reorganisation scheme (the "Group Reorganisation") to rationalise the structure of the Group in preparation for the listing of the Company's shares on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") in January 2001, the Company became the holding company of the companies now comprising the Group on 19 December 2000, except for certain new subsidiaries (the "New Subsidiaries") which were acquired/established/incorporated subsequent to the completion of the Group Reorganisation. The Group Reorganisation was accomplished by acquiring the entire issued share capital of Legend Wealth Holdings Limited ("Legend Wealth"), the then holding company of the subsidiaries (except for the New Subsidiaries), in consideration of and in exchange for the allotment and issue of 999,900 new ordinary shares of HK$0.10 each in the share capital of the Company, credited as fully paid, to the former shareholders of Legend Wealth, and the existing 100 nil paid shares, credited as fully paid at par. Further details of the Group Reorganisation are set out in the Company's prospectus dated 9 January 2001. The consolidated financial statements have been prepared using the merger basis of accounting as a result of the Group Reorganisation completed on 19 December 2000. Under this basis, the Company has been treated as the holding company of its subsidiaries for the financial years presented rather than from the date of their acquisition, except for the New Subsidiaries which were acquired/established/incorporated subsequent to the completion of the Group Reorganisation and are therefore consolidated from their effective dates of acquisition/establishment/incorporation. Accordingly, the consolidated results of the Group for the year ended 31 December 2000 include the results of the Company and its subsidiaries, except for the New Subsidiaries, with effect from 1 January 2000 and the results of the New Subsidiaries since their respective dates of acquisition/establishment/incorporation. 2. Turnover and profit from operating activities Turnover represents the net invoiced value of goods sold, after allowances for returns and trade discounts. The following tables present revenue and profit information for the Group's business segments. Decorative Toys gift items Consolidated 2001 2000 2001 2000 2001 2000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Segment revenue: Sales to external customers and total revenue 74,705 78,929 48,103 60,415 122,808 139,344 _______ _______ _______ _______ _______ _______ Segment results 14,567 25,969 5,452 24,935 20,019 50,904 _______ _______ _______ _______ Interest, rental income and unallocated gains 3,349 3,282 Unallocated expenses (3,560) (1,221) ________ _______ Profit from operating activities 19,808 52,965 Finance costs ( 2,431) ( 4,251) _______ _______ Profit before tax 17,377 48,714 Tax ( 3,919) ( 7,276) _______ _______ Net profit from ordinary activities attributable to shareholders 13,458 41,438 _______ _______ Profit from operating activities is arrived at after charging depreciation charges of HK$7,760,000 (2000: HK$4,406,000). The following tables present revenue and result information for the Group's geographical segments. PRC (including North European Hong Kong) America Union Others Consolidated 2001 2000 2001 2000 2001 2000 2001 2000 2001 2000 HK$'000 HK$'000HK$'000HK$'000HK$'000HK$'000HK$'000 HK$'000HK$'000 HK$'000 Segment revenue: Sales to external customers 50,238 46,259 49,943 61,961 17,304 26,355 5,323 4,769 122,808 139,344 ______ _____ _____ ______ ______ ______ ______ ____ ______ ______ Segment results 21,686 17,382 (1,033) 20,141 ( 382) 11,400 (252) 1,981 20,019 50,904 ______ _____ _____ ______ ______ ______ ______ ____ ______ ______ 3. Earnings per share The calculation of basic earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$13,458,000 (2000: HK$41,438,000) and the weighted average of 433,691,086 (2000: 330,000,000) ordinary shares in issue during the year. The prior year's weighted average number of shares in issue for the calculation of basic earnings per share has been adjusted for the one-for-one bonus issue of shares during the year. The calculation of diluted earnings per share is based on the net profit from ordinary activities attributable to shareholders for the year of HK$13,458,000 and weighted average number of 440,106,605 ordinary shares in issue. The weighted average number of ordinary shares used in the calculation of diluted earning per share is the 433,691,086 ordinary shares in issue during the year, as used in the basic earnings per share calculation; and the weighted average of 6,415,519 ordinary shares assumed to have been issued at no consideration on the deemed exercise of all warrants outstanding during the year. A diluted earnings per share amount for the year ended 31 December 2000 has not been disclosed as no diluting events existed during that year. 4. Dividends The directors recommend the payment of a final dividend of HK$0.02 per ordinary share in respect of the year, to the shareholders on the register of members as at 28 May 2002. 5. Comparative amounts Due to the adoption of certain new and revised Statements of Standard Accounting Practice during the year, certain comparative amounts have been reclassified to conform with the current year's presentation.