Listed Company Information
 

MODERN BEAUTY<00919> - Results Announcement

Modern Beauty Salon Holdings Limited announced on 06/07/2006:
(stock code: 00919 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Unqualified

                                                        (Audited   )
                                     (Audited   )       Last
                                     Current            Corresponding
                                     Period             Period
                                     from 01/04/2005    from 01/04/2004
                                     to 31/03/2006      to 31/03/2005
                               Note  ('000      )       ('000      )
Turnover                           : 498,265            456,932           
Profit/(Loss) from Operations      : 143,477            126,743           
Finance cost                       : 0                  0                 
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       : 122,511            105,171           
% Change over Last Period          : +16.5     %
EPS/(LPS)-Basic (in dollars)       : 0.2168             0.1948            
         -Diluted (in dollars)     : 0.2163             N/A               
Extraordinary (ETD) Gain/(Loss)    : N/A                N/A               
Profit/(Loss) after ETD Items      : 122,511            105,171           
Final Dividend                     : 13.8 cents         N/A
  per Share                                              
(Specify if with other             : N/A                N/A
  options)                                               
                                                         
B/C Dates for 
  Final Dividend                   : 09/08/2006         to 15/08/2006 bdi.
Payable Date                       : 25/08/2006
B/C Dates for Annual         
  General Meeting                  : 09/08/2006         to 15/08/2006 bdi.
Other Distribution for             : N/A
  Current Period                     
                                     
B/C Dates for Other 
  Distribution                     : N/A   
  
Remarks:

REORGANISATION AND BASIS OF PREPARATION

Reorganisation
Modern Beauty Salon Holdings Limited (the "Company") was incorporated in 
the Cayman Islands on 19 August 2005. The shares have been listed on the 
Main Board of the Stock Exchange of Hong Kong (the "Stock Exchange") since 
9 February 2006. Pursuant to a group reorganisation ("Reorganisation") in 
preparation of the listing of the shares of the Company on the Stock 
Exchange, the Company became the holding company of the companies now 
comprising the Group on 24 January 2006. The Reorganisation involved 
companies under common control, and the Company and its subsidiaries 
resulting from the Reorganisation are regarded as a continuing group. 
Accordingly, the consolidated financial statements of the Group for the 
year ended 31 March 2005 have been prepared using the merger basis of 
accounting as if the Company had been the holding company of the Group 
from the beginning of the earliest period presented.

Basis of preparation
The consolidated financial statements have been prepared in accordance 
with Hong Kong Financial Reporting Standards ("HKFRS") issued by the Hong 
Kong Institute of Certified Public Accountants.  These consolidated 
financial statements have been prepared under historical cost convention 
except that financial assets and financial liabilities (including 
derivative instruments) at fair value through profit or loss.

The preparation of financial statements in conformity with HKFRS requires 
the use of certain critical accounting estimates. It also requires 
management to exercise its judgement in the process of applying the 
Group's accounting policies.

The adoption of new/revised HKFRS
For the year ended 31 March 2006, the Group adopted the new/revised 
standards and interpretations of HKFRS below, which are relevant to its 
operations. The 31 March 2005, comparatives have been amended as required, 
in accordance with the relevant requirements.

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 12         Income taxes
HKAS 14         Segment reporting
HKAS 16         Property, Plant and Equipment
HKAS 17         Leases
HKAS 18         Revenue
HKAS 19         Employee benefits
HKAS 21         The Effects of Changes in Foreign Exchange Rates
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 39         Financial Instruments: Recognition and Measurement
HKAS-Int 15     Operating Leases - Incentives
HKFRS 2         Share-based payment
HKFRS 3         Business Combinations

The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 18, 19, 21, 
24, 27, 33, 36, HKAS-Int 15 and HKFRS 3 did not result in substantial 
changes to the Group's accounting policies. In summary:

-       The adoption of HKAS 1 has affected the presentation of certain 
disclosures.

-       HKASs 2, 7, 8, 10, 12, 14, 16, 18, 19, 21, 27, 33, 36, HKAS-Int 15 
and HKFRS 3 do not have any impact as the Group's accounting policies 
already comply with the standards.

-       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 when there is impairment, the impairment is 
expensed in the income statement. In prior years, the leasehold land was 
accounted for at cost less accumulated depreciation and accumulated 
impairment.

-       HKAS 24 has affected some other related-party disclosures.

-       The adoption of HKASs 32 and 39 has resulted in a change in the 
accounting policy relating to the classification of available-for-sale 
financial assets. It has also resulted in the recognition of the 
derivative financial instruments at fair value, the changes in the 
recognition and measurement of hedging activities, the change in 
recognition, measurement and offsetting certain financial assets and 
liabilities.

- The adoption of HKFRS 2 has resulted in a change in accounting policy 
for share-based payment.

Prior to this, the provision of share options to employees did not result 
in a charge to the income statement. Following the adoption of HKFRS 2, 
the fair value of share options at grant date is amortised over the 
relevant vesting periods to the income statement.

The adoption of HKAS 32 and HKAS 39 resulted in:
                                                                2006
                                                                HK$'000
                        
        Increase in financial assets at fair value              67,979
        Decrease in other investments                           67,979

The adoption of HKFRS 2 resulted in:
                                                                2006
                                                                HK$'000
                        
        Increase in equity                                      444
        Increase in staff costs                                 444



All changes in the accounting policies have been made in accordance with 
the respective transitional provisions of the respective standards, which 
require retrospective application to prior year comparatives other than:

-       HKAS 39 - recognises all derivatives at fair value in the balance 
sheet on 1 January 2005 and adjusts the balance to retained earnings as at 
that date.

-       HKAS-Int 15 - does not require recognition of incentives for 
leases commencing before   1 January 2005.

- HKFRS 3 - prospective from 1 January 2005.


EARNINGS PER SHARE
The calculation of basic earnings per share is based on the Group's net 
profit attributable to shareholders for the year ended 31 March 2006 of 
HK$122,511,000 (2005: HK$ 105,171,000) and the weighted average of 565,
150,685 (2005: 540,000,000) shares in issue during the year. The weighted 
average number of shares for 2005 was based on the assumption that the 
Reorganisation has been completed on 1 April 2004.

The calculation of diluted earnings per share for the year ended 31 March 
2006 is based on the Group's net profit attributable to shareholders for 
the year of HK$122,511,000 and the weighted average of 566,517,087 shares. 
The weighted average number of shares used in the calculation comprises 
the 565,150,685 shares in issue during the year, as used in the basic 
earnings per share calculation, and the weighted average of 1,366,402 
shares assumed to have been issued at no consideration on the deemed 
exercise of options granted under the Company's share option scheme during 
the year. 

No diluted earnings per share has been presented for the year ended 31 
March 2005 as the Company has no dilutive potential shares.


CLOSURE OF REGISTER OF MEMBERS
The Register of Shareholders of the Company will be closed from Wednesday, 
9 August 2006 to Tuesday, 15 August 2006, both dates inclusive, during 
which period no transfer will be effected. In order to qualify for the 
proposed final dividend and the entitlement to attend and vote at the AGM, 
all transfers accompanied by the relevant share certificates must be 
lodged with the Company's Share Registrar, Tricor Investor Services 
Limited at 26th Floor, Tesbury Centre, 28 Queen's Road East, Wanchai, Hong 
Kong not later than 4:00 p.m. on Tuesday, 8 August 2006.