Symphony Holdings Limited — Earnings Release 2003

Apr 6, 2004

Listed Company Information

Listed Company Information
SYMPHONY HOLD<01223> - Results Announcement Symphony Holdings Limited announced on 6/4/2004: (stock code: 01223 ) Year end date: 31/12/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/1/2003 from 1/1/2002 to 31/12/2003 to 31/12/2002 Note ('000 ) ('000 ) Turnover : 1,183,648 939,533 Profit/(Loss) from Operations : 138,014 91,439 Finance cost : (2) (17) Share of Profit/(Loss) of Associates : N/A N/A Share of Profit/(Loss) of Jointly Controlled Entities : 137,232 4,313 Profit/(Loss) after Tax & MI : 256,763 86,713 % Change over Last Period : +196 % EPS/(LPS)-Basic (in dollars) : 0.281 0.104 -Diluted (in dollars) : N/A 0.104 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 256,763 86,713 Final Dividend : 6 cents 1.75 cents per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 6/5/2004 to 12/5/2004 bdi. Payable Date : 31/5/2004 B/C Dates for Annual General Meeting : 6/5/2004 to 12/5/2004 bdi. Other Distribution for : Bonus issue shs on basis of 1 bonus Current Period shs for every 10 existing shs held Bonus shs with no final div entitled B/C Dates for Other Distribution : 6/5/2004 to 12/5/2004 bdi. Remarks: 1. ACCOUNTING POLICIES In the current year, the Group has adopted, for the first time, the following Hong Kong Financial Reporting Standards ("HKFRS(s)") issued by the Hong Kong Society of Accountants ("HKSA"), the term of HKFRS is inclusive of Statements of Standard Accounting Practice ("SSAP(s)") and Interpretations approved by the HKSA. Income Taxes In the current year, the Group has adopted SSAP 12 (Revised) "Income Taxes". The principal effect of the implementation of SSAP 12 (Revised) is in relation to deferred tax. In previous years, the Group did not recognise any deferred tax and the unrecognised deferred tax was calculated using the income statement liability method i.e. timing differences were not expected to reverse in the foreseeable future. SSAP 12 (Revised) requires the adoption of a balance sheet liability method, whereby deferred tax is recognised in respect of all temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, with limited exceptions. In the absence of any specific transitional requirements in SSAP 12 (Revised), the new accounting policy has been applied retrospectively. Comparative amounts for 2002 have been restated accordingly. As a result of this change in policy, the balance of accumulated profits at 1st January, 2002 has been increased by HK$765,000, representing the cumulative effect of the change in policy on the results for periods prior to 1st January, 2002. The change has also resulted in an increase in the profit for the year ended 31st December, 2003 by HK$823,000 (2002: a decrease of HK$488,000). 2. SEGMENT INFORMATION Business segments No business segment analysis is presented as less than 10% of the Group's turnover and contribution to results are contributed by activities other than the manufacture and marketing of footwear products. Geographical segments An analysis of the Group's turnover and contribution to operating results and segmental assets and liabilities by geographical segments, irrespective of the origin of the goods, is presented below:- 2003 United States of America Canada Europe Asia Australia Others HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 TURNOVER 605,919 126,015 293,539 59,302 32,094 66,779 ============================================================== RESULTS Segment results 98,424 20,470 47,682 9,565 5,213 10,847 ============================================================== 2003 Consolidated HK$'000 TURNOVER 1,183,648 ========== RESULTS Segment results 192,201 Unallocated corporate expenses (54,187) _________ Profit from operations 138,014 Interest on bank loans and overdrafts wholly repayable within five years (2) Share of results of a jointly controlled entity 137,232 _________ Profit before taxation 275,244 Taxation (16,100) _________ Profit before minority interests 259,144 Minority interests (2,381) _________ Net profit for the year 256,763 _________ _________ 2002 United States of America Canada Europe Asia Australia Others HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 TURNOVER 589,716 67,123 167,925 35,484 25,077 54,208 =============================================================== RESULTS Segment result 93,907 10,689 26,740 5,885 3,993 8,632 ============================================================== 2002 Consolidated HK$'000 TURNOVER 939,533 ======= RESULTS Segment result 149,846 Unallocated corporate expenses (58,407) --------- Profit from operations 91,439 Interest on bank loans and overdrafts wholly repayable within five years (17) Share of results of a jointly controlled entity 4,313 _______ Profit before taxation 95,735 Taxation (9,075) _______ Profit before minority interests 86,660 Minority interests 53 _______ Net profit for the year 86,713 _______ 3. PROFIT FROM OPERATIONS 2003 2002 HK$'000 HK$'000 Profit from operations has been arrived at after charging (crediting): Allowances for bad and doubtful debts 3,645 3,850 Cost of inventories recognised as expense 638,592 495,683 Depreciation and amortisation 29,681 22,616 Amortisation of goodwill of a subsidiary, included in other operating expenses 139 - (Reversal) impairment loss on investment securities (198) 2,110 (Surplus) deficit arising on revaluation of investment properties (3,500) 15,500 (Surplus) deficit arising on revaluation of land and buildings (1,471) 4,867 Loss on disposal/write-off of property, plant and equipment 26,454 80 Gain on disposal of investment securities (2,777) (247) Dividend income from investments in securities (40) (17) Interest income from investments in securities (1,979) (1,087) ======================= 4. TAXATION 2003 2002 HK$'000 HK$'000 Current tax: Hong Kong - current year 6,316 5,594 - (over)underprovision in prior years (293) 790 Other jurisdictions - Current year 10,886 2,203 - Underprovision in prior years 14 - _______ _______ 16,923 8,587 _______ _______ Deferred tax - current year (797) 488 - attributable to a change in tax rate (26) - _______ _______ (823) 488 _______ _______ Taxation attributable to the Company and its subsidiaries 16,100 9,075 ====================== Hong Kong Profits Tax is calculated at 17.5% (2002: 16%) of the estimated assessable profit for the year. The Hong Kong Profits Tax rate has been increased with effect from the 2003/2004 year of assessment. The effect of this increase has been reflected in the calculation of current and deferred tax balances at 31st December, 2003. Taxation arising in other jurisdictions is calculated at the rates prevailing in the relevant jurisdictions. 5. DIVIDENDS 2003 2002 HK$'000 HK$'000 Ordinary shares: Interim, paid - HK$0.02 per share (2002: HK$0.015 per share) 19,934 12,490 Final, proposed - HK$0.06 per share (2002: HK$0.0175 per share) 60,295 14,572 Special, proposed - Nil (2002: HK$0.25 per share) - 20,817 _______ _______ 80,229 47,879 ======================= Dividend per share in 2002 have been retrospectively adjusted for the effect of the subdivision of shares on the basis of one ordinary share of HK$1.00 each of the Company into four new ordinary shares of HK$0.25 each (' Share Subdivision") The proposed final dividend per share has been proposed by the directors and is subject to the approval by the shareholders in general meeting. 6. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share is based on the following data: 2003 2002 Earnings: Net profit for the year and earnings for the purposes of basic and diluted earnings per share HK$256,763,000 HK$86,713,000 ______________ ______________ ______________ ______________ Number of shares: Weighted average number of ordinary shares for the purposes of basic earnings per share 912,658,066 832,679,984 Effect of dilutive potential ordinary shares in respect of share options - 861,460 ______________ ______________ Weighted average number of ordinary shares for the purposes of diluted earnings per share 912,658,066 833,541,444 ______________ ______________ ______________ ______________ The weighted average number of ordinary shares for the purpose of basic and diluted earnings per share for the year ended 31st December, 2002 has been adjusted for the share subdivision. As the results for the share subdivision, the basic earnings per share for the year ended 31st December 2002 is adjusted from 41.9 cents to 10.4 cents and the diluted earnings per share for the year ended 31st December 2002 is adjusted from 41.8 cents to 10.4 cents. No diluted earnings per share has been presented as there were no potential ordinary shares outstanding during the year ended 31st December, 2003.