Listed Company Information
 

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)
                                                        ======  ======