Yadea Group Holdings Ltd. — Earnings Release 2004

Oct 19, 2004

Listed Company Information

Listed Company Information
CHAODA MODERN<00682> - Results Announcement Chaoda Modern Agriculture (Holdings) Limited announced on 19/10/2004: (stock code: 00682 ) Year end date: 30/06/2004 Currency: RMB Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/07/2003 from 01/07/2002 to 30/06/2004 to 30/06/2003 Note ('000 ) ('000 ) Turnover : 1,861,758 1,485,307 Profit/(Loss) from Operations : 864,150 703,569 Finance cost : (10,844) (15,345) Share of Profit/(Loss) of Associates : 52,262 37,803 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 996,754 725,134 % Change over Last Period : +37 % EPS/(LPS)-Basic (in dollars) : 0.46 0.36 -Diluted (in dollars) : 0.45 0.36 Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 996,754 725,134 Final Dividend : RMB7.70 cents RMB3.70 cents per Share (HK$7.30 cents) (HK$3.49 cents) Special Dividend : RMB0.80 cent N/A per Share (HK$0.70 cent) (Specify if with other : N/A N/A options) B/C Dates for Final & Special Dividend : 19/11/2004 to 25/11/2004bdi. Payable Date : 9/12/2004 B/C Dates for Annual General Meeting : 19/11/2004 to 25/11/2004bdi. Other Distribution for : N/A Current Period B/C Dates for Other Distribution : N/A Remarks: (1) The financial statements have been prepared in accordance with generally accepted accounting principles in Hong Kong and comply with Statements of Standard Accounting Practice ("SSAPs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), the disclosure requirements of the Hong Kong Companies Ordinance and the Rules of Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The financial statements are prepared under the historical cost convention. (2) The calculation of the basic earnings per share is based on the profit attributable to shareholders of RMB996,754,000 (2003: 725,134,000) and the weighted average number of 2,167,796,045 (2003 (restated): 2,012,607,450 after adjusting for the bonus shares issued in 2004) ordinary shares in issue during the year. The calculation of diluted earnings per share is based on the Group's profits for the year of RMB996,754,000 (2003: 725,134,000) and the weighted average number of 2,210,334,639 (2003 (restated): 2,012,607,450 after adjusting for the bonus shares issued in 2004) shares after adjusting for the effects of all dilutive potential ordinary shares under the Company's share option scheme. The weighted average number of shares for the calculation of basic earnings per share and diluted earnings per share has been both adjusted from 1,916,769,000 to 2,012,607,450, as a result of the adjustment for the bonus shares issued during the year ended 30 June 2004. (3) An analysis of turnover and profit from continuing operations: For the year ended 30 June 2004 Breeding Growing and sales Supermarkets Inter- and sales of chain segment of crops livestock operation elimination RMB'000 RMB'000 RMB'000 RMB'000 Sales to external customers 1,698,345 41,007 125,205 (2,799) Cost of sales (503,321) (12,732) (116,640) 2,799 ---------- --------- ---------- --------- Gross profit 1,195,024 28,275 8,565 - Total RMB'000 Sales to external customers 1,861,758 Cost of sales (629,894) ---------- Gross profit 1,231,864 Unallocated items: Other revenue 30,170 Selling and distribution expenses (185,094) General and administrative expenses (102,269) Research expenses (66,709) Other operating expenses (43,812) ---------- Profit from operations 864,150 ========== Inter-segment revenue represents the sales of fruits & vegetables from the crops segment to the supermarket segment. Sales between business segments are accounted fro at competitive market prices charged to unaffiliated customers for similar goods. For the year ended 30 June 2003 Breeding Sales of Growing and sales Supermarkets ancillary and sales of chain food of crops livestock operation products RMB'000 RMB'000 RMB'000 RMB'000 Sales to external customers 1,363,164 24,557 79,970 2,264 Cost of sales (399,895) (4,088) (71,954) (1,588) ---------- --------- ---------- ---------- Gross profit 963,269 20,469 8,016 676 Inter- Export segment trading elimination Total RMB'000 RMB'000 RMB'000 Sales to external customers 20,123 (4,771) 1,485,307 Cost of sales (18,763) 4,771 (491,517) --------- --------- ---------- Gross profit 1,360 - 993,790 Unallocated items: Other revenue 30,088 Selling and distribution expenses (139,767) General and administrative expenses (88,638) Research expenses (58,535) Other operating expenses (33,369) ---------- Profit from operations 703,569 (4) Taxation Before obtaining the award of "State-Level Agricultural Leading Enterprise" in December 2002, provisions for PRC income tax, aggregating to RM93,096,000, had been provided in respect of the net profits of certain subsidiaries for the years ended 30 June 1998, 1999, 2000, 2001 and 2002. According to the current rules and practice in relation to the tax exemption policy for "State-Level Agricultural Leading Enterprises", the Group is not required to pay these PRC income tax payables. In view of this, the whole provision of RMB93,096,000 has been written back during the year. (5) Dividend The directors proposed a final dividend of HK$0.073 (equivalent to RMB0.077) per ordinary share. The directors also proposed a special dividend of HK$0.007 (equivalent to RMB0.008) per ordinary share for the exceptional income of tax written back in prior years. The proposed final dividend and the special dividend are subject to approval by the shareholders in Annual General Meeting and not yet accounted for in the current year's financial statements, but will be reflected as an appropriation of retained profits in the financial statements for the year ending 30 June 2005.