Weichai Power Co., Ltd. — Earnings Release 2004

Sep 24, 2004

Listed Company Information

Listed Company Information
V.S. INT'L<01002> - Results Announcement V.S. International Group Limited announced on 24/9/2004: (stock code: 01002 ) Year end date: 31/7/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/8/2003 from 1/8/2002 to 31/7/2004 to 31/7/2003 Note ('000 ) ('000 ) Turnover : 1,021,218 1,136,049 Profit/(Loss) from Operations : 48,452 40,453 Finance cost : (39,961) (21,662) 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 : 419 18,874 % Change over Last Period : -98 % EPS/(LPS)-Basic (in dollars) : 0.0005 0.023 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 419 18,874 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: 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, including processing fee generated from assembling of electronic products Mould design and fabrication : manufacture and sales of plastic injection moulds 2004 Plastic Assembling injection of Mould Inter- Consolidated and electronic design and segment moulding products fabrication elimination HK$'000 HK$'000 HK$'000 HK$'000 HK$'000 Turnover from external customers 737,330 224,956 65,216 (6,284) 1,021,218 ===================================================================== Segment result 87,495 11,758 10,297 - 109,550 Unallocated operating income and expenses (61,098) -------------- Profits from operations 48,452 Finance costs (39,961) Non-operating expenses (4,449) Income tax (2,901) Minority interests (722) ------------- Profit attributable to shareholders 419 ========= Depreciation for the year 53,465 11,404 3,209 - 68,078 Unallocated depreciation and amortisation 3,195 --------- 71,273 ======== Significant non-cash items (other than depreciation and amortisation) (225) 4,955 (171) - 4,559 ======== 2003 Plastic Assembling injection of Mould Inter- Consolidated and electronic design and segment moulding products fabrication elimination HK$'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) Income tax (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 6,316 ------------ 47,633 ========= Significant non-cash items (other than depreciation and amortisation) 2,123 164 32 - 2,319 ======= 2: Profit from ordinary activities before taxation Profit from ordinary activities before taxation is arrived at after charging/(crediting): 2004 2003 HK$'000 HK$'000 (a) Finance costs: Interest on bank advances and other borrowings repayable within five years 25,438 17,413 Interest on bank advances and other borrowings repayable over five years 5,434 - Interest on other loans 2,596 2,823 Finance charges on obligations under finance leases 1,661 706 -------- -------- Total borrowing costs 35,129 20,942 Less: Borrowing costs capitalised as construction in progress * (1,083) (2,856) -------- -------- 34,046 18,086 Exchange losses 3,368 800 Other charges 2,547 2,776 --------- --------- 39,961 21,662 ========= ======== * The borrowing costs have been capitalised at an average cost of borrowings to the Group of 4.8% (2003: 4.8%) per annum for construction in progress. 2004 2003 HK$'000 HK$'000 (b) Other items: Cost of inventories 882,222 1,003,311 Depreciation - owned assets 65,180 45,516 - assets held under finance leases 5,819 2,094 Operating lease charges - factory and hostel rentals 14,562 11,652 Amortisation of goodwill 274 23 Non-operating expenses - costs associated with termination of leases 4,449 - ======== ======== 3: Earnings per share (a) Basic earnings per share The calculation of basic earnings per share is based on the profit attributable to shareholders of HK$419,000 (2003: HK$18,874,000) and the weighted average number of 820,000,000 (2003: 820,000,000) 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 2004 and 2003. 4: Change in accounting policy In prior years, deferred tax liabilities were provided using the liability method in respect of the taxation effect arising from all material timing differences between the accounting and tax treatment of income and expenditure, which were expected with reasonable probability to crystallise in the foreseeable future. Deferred tax assets were not recognised unless their realisation was assured beyond reasonable doubt. With effect from 1 August 2003, in order to comply with Statement of Standard Accounting Practice 12 (revised) issued by the Hong Kong Institute of Certified Public Accountants, the Group adopted a new policy for deferred tax. There was no material effect on the profits and net assets of the Group for the current and prior years as a result of the adoption of this accounting policy.