Tomson Group Limited — Earnings Release 2006

Sep 6, 2006

Listed Company Information

Listed Company Information
TOMSON GROUP<00258> - Results Announcement Tomson Group Limited announced on 06/09/2006: (stock code: 00258 ) Year end date: 31/12/2006 Currency: HKD Auditors' Report: N/A Interim report reviewed by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/01/2006 from 01/01/2005 to 30/06/2006 to 01/06/2005 Note ('000 ) ('000 ) Turnover : 192,773 309,259 Profit/(Loss) from Operations : 55,939 97,394 Finance cost : (2,855) (9,001) Share of Profit/(Loss) of Associates : 917 872 Share of Profit/(Loss) of Jointly Controlled Entities : 12,059 11,835 Profit/(Loss) after Tax & MI 2 : 52,174 205,670 % Change over Last Period : -74.63 % EPS/(LPS)-Basic (in dollars) 3 : 0.0412 0.1828 -Diluted (in dollars) 3 : 0.0411 N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 52,174 205,670 Interim Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Interim Dividend : N/A Payable Date : N/A B/C Dates for (-) General Meeting : N/A Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: 1. PRINCIPAL ACCOUNTING POLICIES The convertible bonds that issued by the Group were denominated in foreign currency. Such convertible bonds contain a liability component and an embedded conversion option, which are required to be accounted for separately at amortised cost and fair value, respectively, in accordance with Hong Kong Accounting Standard 39 "Financial Instruments: Recognition and Measurement". The comparative figures for the period ended 30th June, 2005 were restated to conform to the accounting treatment applied in the annual financial statements for the year ended 31st December, 2005. The profit from operations for the six months ended 30th June, 2005 has been decreased by HK$25,713,000 which mainly represents a loss arising from changes in fair value of the embedded conversion option of the convertible bonds while there has been a decrease in finance cost of HK$903,000. In this connection, the profit after taxation and minority interests for the period has been decreased by HK$24,810,000. 2. PROFIT AFTER TAXATION & MI A reduction in profit for the six months ended 30th June, 2006 as compared with that for the corresponding period in 2005 was principally attributable to the fact that a discount on acquisition of minority interests of a subsidiary of the Company of approximately HK$124.78 million was credited to the consolidated income statement of the Company in 2005 in accordance with Hong Kong Financial Reporting Standards. In addition, the turnover of the Group for the current period in 2006 fell by around 38% to approximately HK$192.77 million and it was mainly attributable to a decrease in revenues generated from property development and trading of the Group for the period. Since there was not much stock of those completed projects available for sale and the key project of the Group, Tomson Riviera has not yet finished, both sale proceeds derived and profit generated from property development and trading of the Group in Shanghai were therefore reduced in the first half of 2006. 3. EARNINGS PER SHARE The calculation of the basic and diluted earnings per share attributable to the ordinary shareholders of the Company is based on the following data: Six months ended 30th June (Restated) 2006 2005 __________________________ HK$'000 HK$'000 Earnings Profit for the period attributable to shareholders of the Company for the purposes of basic earnings per share and diluted earnings per share 52,174 205,670 =========================== Number of shares Weighted average number of ordinary shares for the purposes of basic earnings per share 1,267,785,541 1,125,200,480 Effect of dilutive potential ordinary shares ============= - exercise of share options 2,355,580 ______________ Weighted average number of ordinary shares for the purposes of diluted earnings per share 1,270,141,121 ============== Because assuming the conversion of the Company's convertible bonds due 2009 would result in an increase in earnings per share, the computation of diluted earnings per share for the six months ended 30th June, 2006 does not assume such conversion and no diluted earnings per share was presented for the six months ended 30th June, 2005.