ZO Future Group — Earnings Release 2005

Jul 28, 2005

Listed Company Information

Listed Company Information
GRANDTOP INT'L<02309> - Results Announcement Grandtop International Holdings Limited announced on 28/07/2005: (stock code: 02309 ) Year end date: 31/03/2005 Currency: HKD Auditors' Report: Unqualified (Audited ) (Audited ) Last Current Corresponding Period Period from 01/04/2004 from 01/04/2003 to 31/03/2005 to 31/03/2004 Note ('000 ) ('000 ) Turnover : 101,974 119,410 Profit/(Loss) from Operations : 13,952 29,276 Finance cost : (193) (188) 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 : 2,160 23,497 % Change over Last Period : -91 % EPS/(LPS)-Basic (in dollars) : 0.0068 0.0734 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : 2,160 23,497 Final Dividend : NIL NIL per Share (Specify if with other : N/A N/A options) B/C Dates for Final 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. BASIS OF PREPARATION The Hong Kong Institute of Certified Public Accountants (the "HKICPA") has issued a number of new Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards, herein collectively referred to as the new HKFRSs, which are generally effective for accounting periods beginning on or after 1 January 2005. The Group has not early adopted these new HKFRSs in the financial statements for the year ended 31 March 2005. The Group has already commenced an assessment of the impact of these new HKFRSs but is not yet in a position to state whether these new HKFRSs would have a significant impact on its results of operations and financial position. HKFRS 3 "Business Combinations" applies to accounting for business combinations for which the agreement date is on or after 1 January 2005. This HKFRS has had no impact on these financial statements. These financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (which also include Statements of Standard Accounting Practice and Interpretations) issued by the HKICPA, accounting principles generally accepted in Hong Kong and the disclosure requirements of the Hong Kong Companies Ordinance and the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange. The measurement basis used in the preparation of the financial statements is historical cost. 2. TUNROVER AND REVENUE An analysis of the Group's turnover and other revenue is as follows: 2005 2004 HK$'000 HK$'000 Turnover: Continuing operation: Apparel sourcing 81,984 89,523 Provision of sales support services - 3,621 Apparel trading 19,990 - --------------------- 101,974 93,144 --------------------- Discontinuing operation: Provision of marketing and compliance monitoring services - 26,266 --------------------- 101,974 119,410 --------------------- Other revenue: Interest income 200 19 Dividend income from investment securities 159 80 Sundry income 21 - --------------------- 380 99 --------------------- Total revenue 102,354 119,509 ===================== 3. PROFIT FROM OPERATIONS The Group's profit from operations is arrived at after charging: 2005 2004 HK$'000 HK$'000 Staff costs (excluding directors' remuneration): - Wages and salaries 2,467 3,033 - Retirement benefits contributions 173 264 --------------------- 2,640 3,297 --------------------- Auditors' remuneration 500 500 Depreciation of owned fixed assets 1,577 1,109 Loss on disposal of a subsidiary 2,585 72 Amortisation of intangible assets* - Goodwill 271 118 - System development costs 233 465 Operating lease rental on respect of rental premises 516 308 Cost of inventories expensed 73,674 75,686 Irrecoverable bad debts 3,800 - ===================== * The amortisation of intangible assets is included in "Selling Expenses" on the face of the consolidated income statement. 4. EARNINGS PER SHARE The calculation of basic earnings per share is based on the net profit attributable to shareholders for the year ended 31 March 2005 of approximately HK$2,160,000 (2004: HK$23,497,000) and the weighted average of 320,000,000 (2004: 320,000,000) ordinary shares in issue during the year. There were no potential dilutive shares in existence for the two years ended 31 March 2005 and 2004, accordingly, no diluted earnings per share has been presented.