Weichai Power Co., Ltd. — Earnings Release 2003

Sep 26, 2003

Listed Company Information

V.S. INT'L<01002> - Results Announcement V.S. International Group Limited announced on 26/9/2003: (stock code: 01002 ) Year end date: 31/7/2003 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/8/2002 from 1/8/2001 to 31/7/2003 to 31/7/2002 Note ('000 ) ('000 ) Turnover : 1,136,049 932,630 Profit/(Loss) from Operations : 40,453 80,654 Finance cost : (21,662) (15,970) 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 : 18,874 65,791 % Change over Last Period : -71 % EPS/(LPS)-Basic (in dollars) : 0.023 0.0921 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 18,874 65,791 Final Dividend : 0.5 cent 0.5 cent per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : To Be Announced Payable Date : To Be Announced B/C Dates for Annual General Meeting : To Be Announced Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: (1) Basis of presentation The Company was incorporated in the Cayman Islands on 9 July 2001 as an exempted company with limited liability under the Companies Law, Cap. 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. Pursuant to the reorganisation (the "Reorganisation") to rationalise the group structure in preparation for the listing of the Company's shares on The Stock Exchange of Hong Kong Limited, on 20 January 2002 the Company became the holding company of the subsidiaries now comprising the Group. Further details of the Reorganisation are set forth in the Company's prospectus dated 28 January 2002. The Group resulting from the Reorganisation has been regarded as a continuing group. Accordingly, the consolidated financial results have been prepared on the basis of merger accounting in accordance with Statement of Standard Accounting Practice ("SSAP") No. 2.127 "Accounting for Group Reconstructions". On this basis, the Company is treated as the holding company of the Group for both periods presented, rather than from 20 January 2002. Under these circumstances, the results of the Group for the year ended 31 July 2002 include the results of the Company and its subsidiaries with effect from 1 August 2001 or since their respective dates of incorporation/establishment, whichever is a shorter period. In the opinion of the Directors, the resulting consolidated financial results give a more meaningful view of the results of the Group as a whole. These financial results have been prepared in accordance with all applicable SSAP and Interpretations issued by the Hong Kong Society of Accountants, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance. (2) Analysis of turnover and profit from continuing operations The Group is principally engaged in the manufacturing and sales of plastic moulded products and parts, assembling of electronic products and mould design and fabrication. The Group comprises the following main business segments: Plastic injection and moulding : manufacture and sales of plastic moulded products and parts Assembling of electronic products : assembling and sales of electronic products Mould design and fabrication : manufacture and sales of plastic injection moulds 2003 Plastic Assembling Mould Inter- Consolidated injection of design and segment and electronic fabrication elimination moulding products HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Turnover from external customers 600,484 489,971 50,570 (4,976) 1,136,049 ========= ======== ======== ======= ========= Segment result 64,944 29,185 8,049 - 102,178 Unallocated operating income and expenses (61,725) --------- Profits from operations 40,453 Finance costs (21,662) Taxation (2,631) Minority interests 2,714 --------- Profit attributable to shareholders 18,874 ======= Depreciation for the year 30,517 6,546 4,254 - 41,317 Unallocated depreciation and amortisation expenses 6,316 -------- 47,633 ======= Significant non-cash expenses (other than depreciation and amortisation) 2,123 164 32 - 2,319 ======= 2002 Plastic Assembling Mould Inter- Consolidated injection of design and segment and electronic fabrication elimination moulding products HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Turnover from external customers 352,151 545,210 35,269 - 932,630 ========= ======== ======== ======= ========= Segment result 76,613 35,499 8,222 - 120,334 Unallocated operating income and expenses (39,680) --------- Profits from operations 80,654 Finance costs (15,970) Taxation - Minority interests 1,107 --------- Profit attributable to shareholders 65,791 ======= Depreciation for the year 19,946 2,635 2,874 - 25,455 Unallocated depreciation and amortisation expenses 6,088 -------- 31,543 ======= Significant non-cash expenses (other than depreciation and amortisation) 327 179 - - 506 ======= (3) Profit from ordinary activities before taxation Profit from ordinary activities before taxation is arrived at after charging/(crediting): 2003 2002 HK$'000 HK$'000 (a) Finance costs: Interest on bank advances and other borrowings repayable within five years 17,413 11,007 Interest on other loan 2,823 2,502 Finance charges on obligations under finance leases 706 503 -------- ---------- Total borrowing costs 20,942 14,012 Less: Borrowing costs capitalised as construction in progress* (2,856) (1,196) -------- ---------- 18,086 12,816 Exchange losses 800 119 Other charges 2,776 3,035 --------- --------- 21,662 15,970 ========= ======== * The borrowing costs have been capitalised at the average cost of borrowings to the Group of 4.8% (2002: 5.1%) per annum. (b) Other items: Cost of inventories 1,003,311 787,380 Depreciation - owned assets 45,516 30,794 - assets held under finance leases 2,094 749 Amortisation of goodwill 23 - ========= ========= (4) Earnings per share (a) Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to shareholders of the Company of HK$18,874,000 (2002: HK$65,791,000) and the weighted average number of 820,000,000 (2002: 714,301,370) shares in issue during the year. (b) Diluted earnings per share There were no potential dilutive ordinary shares in existence during the years ended 31 July 2003 and 2002. (5) Change in accounting policy Translation of financial statements of subsidiaries outside Hong Kong In prior years, the results of subsidiaries outside Hong Kong were translated into Hong Kong dollars at the rates of exchange ruling at the balance sheet date. With effect from 1 August 2002, in order to comply with SSAP 11 (revised) issued by the Hong Kong Society of Accountants, the Group translates the results of subsidiaries outside Hong Kong at the average exchange rate for the year. The effect of this change in accounting policy is not material and, therefore, the opening balances have not been restated. (6) Comparative figures Certain comparative figures have been reclassified to conform with the current year's presentation.