VITOP BIOENERGY<01178> - Results Announcement
Vitop Bioenergy Holdings Limited announced on 24/03/2006:
(stock code: 01178 )
Year end date: 30/06/2006
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/07/2005 from 01/07/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 53,715 81,371
Profit/(Loss) from Operations : (14,857) 8,700
Finance cost : (31) N/A
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : (152) (266)
Profit/(Loss) after Tax & MI : (15,621) 6,912
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : (0.0228) 0.0102
-Diluted (in dollars) : N/A 0.01
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : (15,621) 6,912
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:
Background of the Company
The Company was incorporated in the Cayman Islands on 15 February 2001 as
an exempted company with limited liability under the Companies Law, Cap.
22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The
Company withdrew the listing of its shares on The Growth Enterprise Market
(the "GEM") of The Stock Exchange of Hong Kong Limited (the "Stock
Exchange") on 10 February 2003, and on the same date, by way of
introduction, listed its entire issued share capital on the Main Board of
the Stock Exchange.
The principal activity of the Company is investment holding. The principal
activities of its subsidiaries are manufacturing and trading of BIOenergyR
products, healthcare food products, multi-functional water generators and
other healthcare products in the People's Republic of China, excluding
Hong Kong (the "PRC").
Basis of preparation and principal accounting policies
The unaudited condensed financial statements have been prepared in
accordance with Hong Kong Accounting Standard 34 "Interim Financial
Reporting" issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA") and with the applicable disclosure requirements of
Appendix 16 to the Rules Governing the Listing of Securities on the Stock
Exchange (the "Listing Rules").
The unaudited condensed financial statements have been prepared under the
historical cost convention, except for the short term investments in
equity securities which are stated at fair value on the basis of their
quoted market price at the end of the Period.
The accounting policies adopted are consistent with those followed in the
Group's annual financial statements for the year ended 30 June 2005,
except that the Group has changed its accounting policy following the
adoption of the new Hong Kong Financial Reporting Standards ("HKFRS') and
HKASs (collectively, the "New HKFRSs") issued by the HKICPA, which are
effective for accounting periods beginning on or after 1 January 2005.
Apart from certain presentational changes by the adoption of applicable
New HKFRSs as set out below, the other New HKFRSs have no material effect
on how the results for the current or prior accounting periods are
prepared and presented.
Share-based payment
In the current period, the Group has applied HKFRS 2 "Share-based
Payments" which requires an expense to be recognized where the Group buys
goods or obtains services in exchange for shares or right over shares, or
in exchange for other assets equivalent in value to a given number of
shares or rights over shares. The principal impact of HKFRS 2 on the Group
is in relation to the expensing of the fair value of 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
recognize the financial effect of these share options until they were
exercised.
Following the adoption of HKFRS 2, the fair value of share options at
grant date is charged to the consolidated income statements of relevant
accounting periods. As a transitional provision, HKFRS 2 has been applied
retrospectively for all share options granted after 7 November 2002 and
had not yet vested upon 1 January 2005. The adoption of HKFRS 2 resulted
in a decrease in the opening balance of the retained profits as at 1 July
2005 by approximately HK$1.26 million since the grant of the share option
in April 2003.
The effect of changes in the above accounting policy on the consolidated
balance sheet is as follows:
HKFRS 2 Total
HK$'000 HK$'000
At 1 July 2005 (audited and restated)
Increase in employee share-based compensation reserve
(1,255) (1,255)
Retained profits / accumulated losses (1,255) (1,255)
At 31 December 2005 (unaudited)
Increase in employee share-based compensation reserve
(1,255) (1,255)
Retained profits / accumulated losses (1,255) (1,255)
Segment information
The Group's unaudited turnover and (loss)/profit before tax analyzed by
business segment are as follows:
BIOenergyR Healthcare food Multi-functional
products products water generators Others
2005 2004 2005 2004 2005 2004 2005 2004
HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000 HK$000
Segment revenue :
Sales to external
customers
17,549 30,633 8,084 1,644 27,162 49,094 920 -
==================================================================
Segment results
3,599 11,147 1,305 510 (1,007) 11,258 110 -
==================================================================
Consolidated
2005 2004
HK$000 HK$000
Segment revenue :
Sales to external customers 53,715 81,371
Segment results 4,007 22,915
Unallocated other revenue and gains 4,051 1,055
Unallocated expenses (22,915) (15,270)
------------------------
(Loss)/Profit from operating activities (14,857) 8,700
Share of loss of
a jointly controlled entity (152) (266)
------------------------
(Loss)/Profit before taxation (15,009) 8,434
Taxation (508) (800)
------------------------
(Loss)/Profit for the period (15,517) 7,634
Minority interests (104) (722)
------------------------
(Loss)/Profit attributable to shareholders (15,621) 6,912
========================
No geographical analysis is presented as all of the Group's turnover and
contribution to (loss) / profit before tax is attributable to markets in
the PRC.
TURNOVER
Turnover represents the net invoiced value of goods sold, after allowances
for returns and trade discounts (where applicable). All significant intra
-group transactions have been eliminated on consolidation.
LOSS FROM OPERATING ACTIVITIES
The Group's unaudited loss from operating activities is arrived at after
charging:
Six months ended
31 December
2005 2004
(Unaudited) (Unaudited)
HK$'000 HK$'000
Cost of inventories sold and services provided
33,226 39,975
Amortisation of intangible assets 925 780
Depreciation of fixed assets 2,191 2,370
Provision for doubtful debts and bad debts written off
7,410 163
Provision for impairment in cost of fixed assets
1,323 -
Loss on disposal of fixed assets 41 11
=======================
TAXATION
Six months ended
31 December
2005 2004
(Unaudited) (Unaudited)
HK$'000 HK$'000
PRC 508 800
-----------------------
508 800
=======================
Hong Kong profits tax has not been provided as the Group had no assessable
profits arising in Hong Kong during the Period (2004: Nil). Taxes on
profits assessable elsewhere have been calculated at the applicable rates
of tax prevailing in the jurisdiction in which the Group operates, based
on existing legislation, interpretations and practices in respect thereof
during the Period.
In accordance with the applicable corporate income tax law of the PRC,
Vitop Bioenergy (China) Ltd. ("Vitop China"), wholly-owned Subsidiary of
the Company operating in the PRC, is exempt from corporate income tax for
the first two profitable calendar years of operations and is entitled to a
50% relief on corporate income tax for the following three years. The two
years' tax exemption period for Vitop China commenced in the tax year
ended 31 December 2001 and expired as at 31 December 2002 under the local
jurisdiction. With effect from 1 January 2003, Vitop China is subject to
a 50% relief on the corporate income tax rate of 15% of its assessable
profit for each of the years ending 31 December 2003, 2004 and 2005.
As at 31 December 2005, the Group did not have any significant unprovided
deferred tax liabilities (30 June 2005: Nil).
DIVIDENDS
The Board has resolved not to pay any interim dividend for the Period (
2004: Nil).
LOSS PER SHARE
The calculation of basic loss per share is based on the loss attributable
to shareholders for the Period of approximately HK$15,621,000 (2004:
profit of HK$6,912,000) and the weighted average number of 683,278,587 (
2004: 680,009,585) ordinary shares in issue during the Period.
Diluted loss per share for the six months ended 31 December 2005 was not
presented because the impact of the exercise of the share options was
anti-dilutive.
For the period ended 31 December 2004, the calculation of diluted earnings
per share is based on the profit attributable to shareholders for the
Period of approximately HK$6,912,000 and the weighted average number of
688,004,397 ordinary shares outstanding during the Period, adjusted for
the effects of all dilutive potential shares. The weighted average number
of ordinary shares used in the calculation of diluted earnings per share
is calculated based on the weighted average number of 680,009,585 ordinary
shares in issue during that period plus the weighted average number of 7,
994,812 ordinary shares deemed to be issued at no consideration as if all
the Company's share options had been exercised.
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