G CHINA HOLD<00431> - Results Announcement
Greater China Holdings Limited announced on 18/04/2006:
(stock code: 00431 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/01/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 38,679 15,207
Profit/(Loss) from Operations : 55,147 14,932
Finance cost : (5,950) (2,984)
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 : 43,341 12,709
% Change over Last Period : +241 %
EPS/(LPS)-Basic (in dollars) : 0.1732 0.0574
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 43,341 12,709
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:
Earnings per share
The calculation of the basic earnings per share is based on the profit
attributable to equity holders of the Company of HK$43,341,000 (2004:HK$
12,709,000) and the weighted average of 250,300,000 shares (2004:221,341,
000 shares) in issue during the year.
No diluted earnings per share has been presented because the Company has
no potential ordinary shares in both years.
Application of Hong Kong Financial Reporting Standards
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 ("HKAS") and Interpretations (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. The
application of the new HKFRSs has resulted in a change in the presentation
of the consolidated income statement, consolidated balance sheet and
consolidated statement of changes in equity. In particular, the
presentation of minority interest has been changed. The change has been
applied retrospectively. The adoption of the new HKFRSs has resulted in
changes to the Group's accounting policies 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
_________________________________________
In previous years, owner-occupied leasehold land and buildings were
included in property, plant and equipment and measured using the cost
model. In the current year, the Group has applied HKAS 17 Leases. Under
HKAS 17, the land and buildings elements of a lease of land and buildings
are considered separately for the purposes of lease classification. 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 land lease prepayment under operating leases, which
are carried at cost and amortised over the lease term on a straight-line
basis. 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 Group's financial statements. HKAS 39
generally does not permit to recognise, derecognise or measure financial
assets and liabilities on a retrospective basis. The principal effects
resulting from the implementation of HKAS 39 are summarised below:
Classification and measurement of financial assets and financial
liabilities
The Group has applied the relevant transitional provisions in HKAS 39 with
respect to classification and measurement of financial assets and
financial liabilities that are within the scope of HKAS 39.
By 31 December 2004, the Group classified and measured its debt and equity
securities in accordance with the benchmark treatment of Statement of
Standard Accounting Practice 24 (SSAP 24). Under SSAP 24, investments in
equity securities are classified as "investment securities" or "other
investments" as appropriate. "Investment securities" are carried at cost
less impairment losses (if any) while "other investments" are measured at
fair value, with unrealised gains or losses included in the profit or
loss. From 1 January 2005 onwards, the Group classifies and measures its
equity securities in accordance with HKAS 39. Financial assets are
classified as "financial assets at fair value through profit or loss", "
available-for-sale financial assets" or "loans and receivables". The
classification depends on the purpose for which the assets are acquired.
"Financial assets at fair value through profit or loss" and "available-
for-sale financial assets" are carried at fair value, with changes in fair
values recognised in profit or loss and equity respectively except for
investments in equity instruments that do not have a quoted market price
in an active market and whose fair value cannot be reliably carried. Such
equity investments are measured at cost less impairment. "Loans and
receivables" are measured at amortised cost using the effective interest
method.
This change has been applied prospectively and has no effect to the
Group's deficit as at 1 January 2005.
Investment properties
_____________________
In the current year, the Group has applied HKAS 40 Investment Property.
The Group has elected to use the fair value model to account for its
investment properties which requires gains or losses arising from changes
in the fair value of investment properties to be recognised directly in
the profit or loss for the year in which they arise. In previous years,
investment properties under the predecessor standard were measured at open
market values, with revaluation surplus or deficits credited or charged to
investment property revaluation reserve unless the balance on this reserve
was insufficient to cover a revaluation decrease, in which case the excess
of the revaluation decrease over the balance on the investment property
revaluation reserve was charged to the income statement. Where a decrease
had previously been charged to the income statement and revaluation
subsequently arose, that increase was credited to the income statement to
the extent of the decrease previously charged. The Group has applied the
relevant transitional provisions in HKAS 40 and elected to apply HKAS 40
from 1 January 2005 onwards. This change has had no effect on the Group's
deficit at 1 January 2005 as the Group had no investment property
revaluation reserve as at that date.
Deferred taxes related to investment properties
_______________________________________________
In previous years, deferred tax consequences in respect of revalued
investment properties were assessed on the basis of the tax consequence
that would follow from recovery of the carrying amount of the properties
through sale in accordance with the predecessor interpretation. In the
current year, the Group has applied HKAS Interpretation 21 Income Taxes -
Recovery of Revalued Non-Depreciable Assets ("HKAS INT 21") which removes
the presumption that the carrying amount of investment properties are to
be recovered through sale. Therefore, the deferred tax consequences of
the investment properties are now assessed on the basis that reflect the
tax consequences that will follow from the manner in which the Group
expects to recover the property at each balance sheet date. In the
absence of any specific transitional provisions in HKAS INT 21, this
change in accounting policy has been applied retrospectively.
Business Combinations
_____________________
In the current year, the Group has applied HKFRS 3 Business Combinations.
In previous years, goodwill arising on acquisitions was capitalised and
amortised over its estimated useful life. The Group has applied the
relevant transitional provisions in HKFRS 3. With respect to goodwill
previously capitalised on the balance sheet, the Group has discontinued
amortising such goodwill from 1 January 2005 onwards and goodwill will be
tested for impairment at least annually/in the financial period in which
the acquisition takes place. Goodwill arising on acquisitions after 1
January 2005 is measured at cost less accumulated impairment losses (if
any) after initial recognition. In accordance with the transitional
provisions of HKFRS 3, the Group eliminated the carrying amount of
goodwill by the related accumulated amortisation of HK$820,000. This
change has had no effect on the Group's deficit as at 1 January 2005.
The effects of changes in the accounting polices described above on the
results for the current and prior year, which has decreased (increased)
the profit for current and prior year, is as follows:
2005 2004
____ ____
HK$'000 HK$'000
Increase (decrease) in deferred tax taxes relating to
the investment properties 6,067 (447)
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