ZO Future Group — Interim / Quarterly Report 2006

Dec 23, 2005

Listed Company Information

Listed Company Information
GRANDTOP INT'L<02309> - Results Announcement Grandtop International Holdings Limited announced on 23/12/2005: (stock code: 02309 ) Year end date: 31/03/2006 Currency: HKD Auditors' Report: N/A Interim report reviewed by: Audit Committee (Unaudited ) (Unaudited ) Last Current Corresponding Period Period from 01/04/2005 from 01/04/2004 to 30/09/2005 to 30/09/2004 Note ('000 ) ('000 ) Turnover : 29,429 74,234 Profit/(Loss) from Operations : (31,542) 16,510 Finance cost : (116) (98) 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 : (31,537) 13,135 % Change over Last Period : N/A % EPS/(LPS)-Basic (in dollars) : (0.099) 0.041 -Diluted (in dollars) : N/A N/A Extraordinary (ETD) Gain/(Loss) : N/A N/A Profit/(Loss) after ETD Items : (31,537) 13,135 Interim Dividend : Nil Nil per Share (Specify if with other : N/A N/A options) B/C Dates for Interim 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 and accounting policies These unaudited condensed consolidated interim financial statements (" Interim Report") have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants. The Interim Report has not been audited by the Company's auditors but has been reviewed by the Company's Audit Committee and should be read in conjunction with the annual financial statements for the year ended 31st March 2005. The accounting policies and methods of computation used in the preparation of this Interim Report are consistent with those used in the annual financial statements for the year ended 31st March 2005, except that the Group has changed certain of its accounting policies following its adoption of new/revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("new HKFRS") which are effective for accounting periods commencing on or after 1st January 2005. The changes to the Group's accounting policies and the effect of adopting these new policies are set out in Note 2 below. During the period, the Group adopted the new/revised standards of HKFRS below, which are relevant to its operations. The comparatives figures have been amended as required, in accordance with the relevant requirements. 2. Changes in accounting policies HKAS 1 Presentation of Financial Statements HKAS 2 Inventories HKAS 7 Cash Flow Statements HKAS 8 Accounting Policies, Changes in Accounting Estimates and Errors HKAS 10 Events after the Balance Sheet Date HKAS 14 Segment Reporting HKAS 16 Property, Plant and Equipment HKAS 17 Leases HKAS 21 The Effects of Changes in Foreign Exchange Rates HKAS 23 Borrowing Costs HKAS 24 Related Party Disclosures HKAS 27 Consolidated and Separate Financial Statements HKAS 32 Financial Instruments: Disclosure and Presentation HKAS 33 Earnings per Share HKAS 36 Impairment of Assets HKAS 38 Intangible Assets HKAS 39 Financial Instruments: Recognition and Measurement HKFRS 3 Business Combinations HK-Int 4 Lease - Determination of the Length of Lease Term in respect of Hong Kong Land Leases The adoption of new/revised HKASs 1, 2, 7, 8, 10, 14, 16, 21, 23, 24, 27 and 33 did not result in substantial changes to the Group's accounting policies. In summary: - HKAS 1 has affected the presentation of minority interest and other disclosures. - HKAS 2, 7, 8, 10, 16, 23, 27 and 33 had no material effect on the Group's policies. - HKAS 21 had no material effect on the Group's policy. The functional currency of each of the consolidated entities has been re- evaluated based on the guidance to the revised standard. All the Group entities have the same functional currency as the presentation currency for respective entity financial statements. - HKAS 24 has affected the identification of related parties and some other related-party disclosures. The adoption of revised HKAS 17 has resulted in a change in the accounting policy relating to the reclassification of leasehold land and land use rights from property, plant and equipment to operating leases. The up- front prepayments made for the leasehold land and land use rights are expensed in the income statement on a straight-line basis over the period of the lease or where there is impairment, the impairment is expensed in the income statement. In priors, the leasehold land was accounted for at cost less accumulated depreciation and accumulated impairment. The adoption of HKASs 32 and 39 has resulted in a change in the accounting policy relating to the classification of financial assets at fair value through profit or loss and available-for-sale financial assets. It has also resulted in the recognition of derivative financial instruments at fair value and the change in the recognition and measurement of hedging activities. The adoption of HKASs 36, 38 and HKFRS 3 results in a change in the accounting policy for goodwill. Until 31st March 2005, goodwill was amortised on a straight-line basis over 15 years; and assessed for an indication of impairment at each balance sheet date. In accordance with the provisions of HKFRS 3: - The Group cased amortisation of goodwill from 1 April 2005; - Accumulated amortisation as at 31st March 2005 has been eliminated with a corresponding decrease in the cost of goodwill; - From the year ending 31st March 2006 onwards, goodwill is tested annually for impairment, as well as when there is indication of impairment. All changes in the accounting policies have been made in accordance with the transition provisions in the respective standards. All standards adopted by the Group require retrospective application other than the following standards: - HKAS 16 - the initial measurement of an item of property, plant and equipment acquired in an exchange of assets transaction is accounted at fair value prospectively only to future transaction; - HKAS 21 - prospective accounting for goodwill and fair value adjustments as part of foreign operations; - HKAS 39 - does not permit to recongise, derecognise and measure financial assets and liabilities in accordance with this standard on a retrospective basis. - HKFRS 3 - prospectively after the adoption date. 3. Loss per share The calculation of basic loss per share is based on the Group's net loss attributable to shareholders for the period ended 30th September 2005 of HK$31,537,000 (2004: net profit attributable to shareholders of HK$13,135 ,000) and the weighted average of 320,000,000 (2004: 320,000,000) ordinary shares in issue during the period. There were no potential dilutive shares in existence for the two periods ended 30th September 2005 and 2004, accordingly, no diluted earnings per share has been presented.