YGM Trading Limited — Earnings Release 2004

Jul 19, 2004

Listed Company Information

Listed Company Information
YGM TRADING<00375> - Results Announcement YGM Trading Limited announced on 19/7/2004: (stock code: 00375 ) Year end date: 31/3/2004 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 1/4/2003 from 1/4/2002 to 31/3/2004 to 31/3/2003 Note ($ ) ($ ) Turnover : 727,735,000 652,000,000 Profit/(Loss) from Operations : 108,330,000 74,035,000 Finance cost : (1,368,000) (906,000) Share of Profit/(Loss) of Associates : 18,528,000 16,726,000 Share of Profit/(Loss) of Jointly Controlled Entities : N/A N/A Profit/(Loss) after Tax & MI : 171,187,000 73,563,000 % Change over Last Period : +132.7 % EPS/(LPS)-Basic (in dollars) : 1.11 0.48 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 171,187,000 73,563,000 Final Dividend : $0.25 $0.15 per Share (Specify if with other : N/A N/A options) B/C Dates for Final Dividend : 13/9/2004 to 20/9/2004 bdi. Payable Date : 21/9/2004 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. 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 April 2003, in order to comply with Statement of Standard Accounting Practice 12 (revised) issued by the Hong Kong Society of Accountants, the group adopted a new policy for deferred tax. As a result of the adoption of this accounting policy, the group's profit for the year has been increased by $2,118,000 (2003: $2,255,000) and the net assets as at the year end have been increased by $12,331,000 (2003: $10,949,000). The new accounting policy has been adopted retrospectively, with the opening balances of retained profits and reserves and the comparative information adjusted for the amounts relating to prior periods. 2 Profit/(Loss) after Taxation and MI Profit/(loss) after taxation and MI is arrived at after charging/ (crediting): 2004 2003 $'000 $'000 (a) Finance costs Interest on bank advances and other borrowings wholly repayable within five years 1,368 906 ======== ======== (b) Other items Profit on disposal of land and building (Note 1) (64,957) - Impairment of goodwill (Note 2) 22,387 - Net gain on disposal of investment securities - (1,674) Net gain on disposal of other securities(8,999) - Net gain on disposal of convertible preference shares (14,710) (270) Net realised and unrealised (gains)/losses on other securities carried at fair value (4,732) 2,198 Net loss on disposal of fixed assets 162 312 ======== ======== Notes :- 1. a profit from the disposal of three shop premises in Parklane Shopper's Boulevard, Tsim Sha Tsui, Kowloon. 2. Goodwill arising on the acquisition of an associate amounted to HK$22,387,000 and was originally intended to be amortised over a period of 10 years. However, due to concerns over the continued earning potential of the associate arising from changes in market conditions, as impairment loss equivalent to the carrying value of the goodwill as at 31 March 2004 of HK$22,387,000 has been recognised as at 31 March 2004. 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 $171,187,000 (2003 (restated): $73,563,000) and 154,698,792 ordinary shares (2003: 154,698,792 shares) in issue during the year. (b) Diluted earnings per share There were no dilutive potential ordinary shares in existence for both the current and prior year.