SOLARTECH INT'L<01166> - Results Announcement
Solartech International Holdings Limited announced on 05/10/2006:
(stock code: 01166 )
Year end date: 30/06/2006
Currency: HKD
Auditors' Report: Unqualified
(Restated)
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/07/2005 from 01/04/2004
to 30/06/2006 to 30/06/2005
Note ('000 ) ('000 )
Turnover : 2,115,548 2,056,288
Profit/(Loss) from Operations : 151,207 3,170
Finance cost : (36,565) (32,134)
Share of Profit/(Loss) of
Associates : 236 289
Share of Profit/(Loss) of
Jointly Controlled Entities : 10 N/A
Profit/(Loss) after Tax & MI : 78,856 (60,659)
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : 0.195 (0.189)
-Diluted (in dollars) : 0.188 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 78,856 (60,659)
Final Dividend : 4 cents Nil
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 23/11/2006 to 24/11/2006 bdi.
Payable Date : 01/12/2006
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. GENERAL
During the last period, the Directors resolved to change the
financial year end date of the Company and its subsidiaries (the "Group")
from 31 March to 30 June in order to allow the Group to prepare and update
its financial results on semi-annual basis as most members of the Group
are in the People's Republic of China (the "PRC") having year end date of
31 December. As a result, the consolidated income statement, consolidated
statement of changes in equity and consolidated cash flow statement of the
Group for the prior period covered the 15 months period ended 30 June 2005
and the current period covered the 12 months year ended 30 June 2006, and
therefore may be not comparable.
2. ADOPTION OF NEW/REVISED HONG KONG FINANCIAL REPORTING STANDARDS/
CHANGES IN ACCOUNTING POLICIES
In the current year, the Group has applied, for the first time, a
number of new Hong Kong Financial Reporting Standards ("HKFRSs"), Hong
Kong Accounting Standards ("HKASs") and Interpretations ("INTs") (
hereinafter collectively referred to as "new HKFRSs") issued by the Hong
Kong Institute of Certified Public Accountants ("HKICPA") that are
effective for accounting periods beginning on or after 1 January 2005
except for HKFRS 3 "Business combinations", HKAS 36 "Impairment of assets"
and HKAS 38 "Intangible assets" which the Group had early adopted in the
accounting period ended 30 June 2005. The application of the other new
HKFRSs has resulted in a change in the presentation of the income
statement, balance sheet and the statement of changes in equity. In
particular, the presentation of minority interests has been changed. The
changes in presentation have been applied retrospectively. The adoption
of the new HKFRSs has resulted in changes to the Group's accounting
polices in the following areas that have an effect on how the results for
the current or prior accounting periods are prepared and presented:
Owner-occupied leasehold interest in land
-----------------------------------------
The Group has land use rights in the People's Republic of China (
the "PRC"), with buildings erected on them for manufacturing purposes. In
previous years, these property interests were included in property, plant
and equipment and measured using the revaluation model. Under HKAS 17 "
Leases", the land and buildings elements of a lease of land and buildings
are considered separately for the purposes of lease classification, unless
the lease payments cannot be allocated reliably between the land and
buildings elements, in which case, the entire lease is generally treated
as a finance lease. To the extent that the allocation of the lease
payments between the land and buildings elements can be made reliably, the
leasehold interests in land are reclassified to prepaid lease payments
under operating leases, which are carried at cost and amortised over the
lease term on a straight-line basis. The Group has resolved to state the
buildings at cost and amortised over the lease term on a straight-line
basic and reverse the amount held in the asset revaluation reserve and
corresponding deferred taxation accordingly. This change in accounting
policy has been applied retrospectively.
Financial instruments
---------------------
In the current year, the Group has applied HKAS 32 "Financial
instruments: Disclosure and Presentation" and HKAS 39 "Financial
Instruments: Recognition and Measurement". HKAS 32 requires retrospective
application. The application of HKAS 32 has had no material effect on the
presentation of financial instruments in the financial statements of the
Group. HKAS 39, which is effective for accounting periods beginning on or
after 1 January 2005, generally does not permit the recognition,
derecognition or measurement of financial assets and liabilities on a
retrospective basis.
Share-based payments
--------------------
In the current period, the Group has applied HKFRS 2 "Share-based
Payment" which requires an expense to be recognised where the Group buys
goods or obtains services in exchange for shares or rights over shares ("
equity-settled transactions"), or in exchange for other assets equivalent
in value to a given number of shares or rights over shares ("cash-settled
transactions"). The principal impact of HKFRS 2 on the Group is in
relation to the expensing of the fair value of employees' and other
eligible parties' share options of the Company determined at the date of
grant of the share options over the vesting period. Prior to the
application of HKFRS 2, the Group did not recognise the financial effect
of these share options until they were exercised. The Group has applied
HKFRS 2 to share options granted on or after1 July 2005. In relation to
share options granted before 1 July 2005, the Group has not applied HKFRS
2 to share options granted after 7 November 2002 and had vested before 1
July 2005 in accordance with the relevant transitional provisions.
However, the Group is still required to apply HKFRS 2 retrospectively to
share options that were granted after 7 November 2002 and had not yet
vested on 1 July 2005. For share options that were granted after 7
November 2002 had been fully vested before 1 July 2005 and no prior period
adjustments are made accordingly. For the share options that were granted
during the year, the fair value of share options has been recognised in
the income statement as share based payments.
POTENTIAL IMPACT ARISING ON THE NEW OR REVISED ACCOUNTING STANDARDS NOT
YET EFFECTIVE
The Group has not early applied the following new standards,
amendments and interpretations that have been issued but are not yet
effective. The Group has not already commenced an assessment of the
impact of these new or revised standards, amendments and interpretations
on the financial position of the Group.
The Group anticipates that the applications of these new or revised
standards, amendments and interpretations would not have significant
impact on the results and financial position of the Group.
HKAS 1 (Amendment) Capital disclosures1
HKAS 19 (Amendment) Actuarial gains and losses, group plans
and disclosures2
HKAS 21 (Amendment) The effects of change in foreign exchange
rate -net investment in a foreign
operation2
HKAS 39 (Amendment) Cash flow hedge accounting of forecast
intragroup transactions2
HKAS 39 (Amendment) The fair value option2
HKAS 39 & HKFRS 4 Financial guarantee contracts2
(Amendments)
HKFRS 6 Exploration for and evaluation of mineral
resources2
HKFRS 7 Financial instruments: Disclosures1
HK(IFRIC) - INT 4 Determining whether an arrangement
contains a lease2
HK(IFRIC) - INT 5 Rights to interests arising from
decommissioning, restoration and
environmental rehabilitation funds2
HK(IFRIC) - INT 6 Liabilities arising from participating in
a specific market - waste electrical and
electronic equipment3
HK(IFRIC) - INT 7 Applying the restatement approach under
HKAS 29
Financial Reporting in Hyperinflationary
Economics4
HK(IFRIC) - INT 8 Scope of HKFRS 25
HK(IFRIC) - INT 9 Reassessment of embedded derivatives6
HK(IFRIC) - INT 10 Interim financial reporting and
impairment7
1 Effective for annual periods beginning on or after 1 January 2007.
2 Effective for annual periods beginning on or after 1 January 2006.
3 Effective for annual periods beginning on or after 1 December 2005.
4 Effective for annual periods beginning on or after 1 March 2006.
5 Effective for annual periods beginning on or after 1 May 2006.
6 Effective for annual periods beginning on or after 1 June 2006.
7 Effective for annual periods beginning on or after 1 November 2006.
3. EARNING (LOSS) PER SHARE
The calculation of the basic earning (loss) per share is based on
the following data:
1.7.2005 1.4.2004
to to
30.6.2006 30.6.2005
-------------------------
HK$'000 HK$'000
Results for the year/period attributable to equity owners of
parents for the purpose of basic earnings (loss) per share
78,856 (60,659)
Imputed interest on convertible notes
960 -
--------- ----------
Earnings (loss) for the purpose of diluted earnings per share
79,816 (60,659)
======= =========
Number of shares
1.7.2005 1.4.2004
to to
30.6.2006 30.6.2005
-------------------------
Weighted average number of ordinary shares for the
purpose of basic earnings (loss) per share
403,575,321 320,138,287
Effect of dilutive potential ordinary shares:
Share options 11,908,534 -
Convertible notes 10,050,311 -
----------- --------------
Weighted average number of ordinary shares for the
purpose of diluted earnings per share
425,534,166 320,138,287
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