028 World Trade Bun Kee(040915)
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World Trade Bun Kee Ltd. !"#$%&' (Incorporated in Bermuda with limited liability) (Stock Code: 380) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2004 The Board of Directors (the “Board”) of World Trade Bun Kee Ltd. (the “Company”) is pleased to further as the increasing purchase cost will be retained in the near future. In January 2004, the announce the unaudited consolidated results of the Company and its subsidiaries (the “Group”) for Group had received an interim insurance compensation from the insurance company amounted to the six months ended 30th June 2004 as follows: HK$5,667,000 and charged as other income. Moreover, the Group had disposed the investment property in Tsim Sha Tsui and recorded a gain of disposal amounted to HK$4,110,000. The Group CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED) For the six months ended had achieved an increase of 99.69% in profit attributable to shareholders to HK$31,681,000 for the period ended 30th June 2004. The significant increase in the profit attributable to the shareholders 30th June for the period was due to the widen profit margin and inclusion of the gain on the disposal of 2004 2003 Note HK$’000 HK$’000 investment property and interim insurance compensation income. Turnover 2 210,259 210,674 In the first half year of 2004, the Group has supplied pipes, fittings and/or other related accessories Cost of sales (146,793) (158,632) to several large projects namely, Grand Promenade, AIG Tower, Chelsea Court, AsiaWorld-Expo (Phase I) in Hong Kong International Airport, The Cairnhill, Residence Oasis, Cyberport Residence Gross profit 63,466 52,042 Bel-Air Phase 2, 3 and 4, Pok Oi Hospital Redevelopment & Expansion, Coastal Skyline, Central Other revenue 103 346 reclamation Phase III – Hinterland drainage improvement works (HK16/03), Immigration Services Selling and distribution costs (4,228) (4,709) Training School and Preowne Immigration Centre, KCRC Lok Ma Chau Spur Line and Las Vegas Administrative expenses (32,700) (29,332) Sands, Macau. Other income 11,418 1,691 As at 30th June 2004, contracts on hand amounted to approximately HK$100 million for the Group. Other operating expenses (184) (180) The major projects which the Group will supply pipes, fittings and/or other related accessories Operating profit 3 37,875 19,858 include, Tomorrow Land Disneyland, Fantasy Land Disneyland, Tung Chung City Gate Hotel, Hung Finance costs (318) (589) Hom KIL 11110 Hotel development, Hung Hom KIL11103 Hotel development, Caribbean Coast Phase 4, 5 & 6 , Lamma Island - Power Station Extension Unit 9, Marine Police North Division Profit before taxation 37,557 19,269 Base, China Gas South Factory redevelopment (residential project), Redevelopment of Tiger Balm Taxation 4 (5,876) (3,404) Gardens and Lai Chi Kok Bus Depot Redevelopment. Profit attributable to shareholders 31,681 15,865 The Group continues to adhere to the strategy of maintaining balance exposure both in terms of new products and new business. By doing so, the Board believes it will help the Group to build a larger Dividend 5 4,837 3,628 scale of economy. In order to let the Company to be able to maintain the profitability of its business in the market, the Board is actively recombining the human resources and investment line and Earnings per share stabilizing the business so as to reach the goal of efficiency and effectiveness. Basic 6 13.10 cents 6.56 cents LIQUIDITY AND FINANCIAL RESOURCES Diluted 6 N/A N/A As at 30th June 2004, the cash and bank balance of the Group was HK$70,751,000 (31st December 2003: HK$51,332,000). Basically the Group’s working capital requirement has been financed by its NOTES TO THE FINANCIAL STATEMENTS internal resources and banking facilities. The Group believes that funds generated from internal 1. PRINCIPAL ACCOUNTING POLICIES operations, its existing reserve and the available banking facilities will enable the Group to meet its The unaudited condensed interim financial statements are prepared in accordance with Hong Kong Statement future cash requirements. of Standard Accounting Practice No. 25, “Interim Financial Reporting”, issued by the Hong Kong Society of Accountants, and Appendix 16 of the Rules Governing the Listing of Securities (the “Listing Rules”) on The Group had aggregate banking facilities of approximately HK$234,125,000 as at 30th June 2004 The Stock Exchange of Hong Kong Limited (the “Stock Exchange”). (31st December 2003: HK$225,125,000) for term loans and other trade finance facilities. Banking facilities utilised as at 30th June 2004 amounted to approximately HK$76,197,000 (31st December The accounting policies used in the preparation of the condensed interim financial statements are consistent 2003: HK$74,566,000). with those used in the annual financial statements for the year ended 31st December 2003. The Group’s borrowings are mainly denominated in Hong Kong Dollars. Banking facilities were 2. SEGMENT INFORMATION The Group is principally engaged in the trading and distribution of construction materials, mainly water granted to the Group which bear interest at prevailing market rates. pipes and fittings. The Group conducts its business transactions mainly in Hong Kong Dollars, US Dollars and Australian Business segment information is not required as the revenue, results and assets of the wholesale business Dollars. Currency forward contracts were arranged for the transactions denominated in other represent more than 90% of the total revenue, results and assets of the Group respectively. currencies for hedging purposes. No forward exchange contracts was outstanding as at 30th June 2004 (31st December 2003: HK$8,745,000). Geographical segment information is not shown as over 90% of the Group’s turnover and operating profit are derived from Hong Kong. During the period under review, there was no significant deviation from the policies above. 3. OPERATING PROFIT Over 90% of the Group’s cash is either denominated in Hong Kong Dollars or US Dollars. The Operating profit is stated after crediting gain on disposal of property held for sale of HK$4,110,000 (2003: exposure to exchange fluctuation is minimal. nil) and interim insurance compensation received amounted to HK$5,667,000 (2003: nil) and charging depreciation of HK$804,000 (2003: HK$1,330,000). As at 30th June 2004, the gearing ratio (total debts/total assets of the Group) was 0.16 (31st 4. TAXATION December 2003: 0.16). Hong Kong profits tax has been provided at the rate of 17.5% (2003: 17.5%) on the estimated assessable CONTINGENT LIABILITIES profit for the period. As at 30th June 2004, the Group had contingent liabilities in respect of indemnities in respect of No provision for deferred taxation has been made in the interim financial statements as there were no shipping guarantees given by banks totalling approximately HK$1,945,000 (31st December 2003: significant timing differences arising from the period or at the balance sheet date. HK$3,271,000). 5. DIVIDENDS CONTINGENT ASSETS AND POST-BALANCE SHEET EVENTS For the six months ended In November 2002, a fire broke out in one of the Group’s warehouses. The Group has made an 30th June insurance claim of HK$16 million for loss of stock of goods covered under its insurance policy. In 2004 2003 January 2004, the Group had received an interim insurance compensation amounted to HK$5,667,000. HK$’000 HK$’000 In July 2004, the Group had received the final insurance compensation amounted to HK$10,308,000. Interim dividend proposed of HK$0.02 per share (2003: HK$0.015 per share) 4,837 3,628 STAFF AND EMPLOYMENT Including the directors of the Group, as at 30th June 2004, the Group employed a total of 160 (31st 6. EARNINGS PER SHARE December 2003: 150) full-time employees. Total staff remuneration for the period ended 30th June The calculation of basic earnings per share is based on the Group’s profit attributable to shareholders of 2004 was approximately HK$21,729,000 (2003: HK$20,225,000). HK$31,681,000 (2003: HK$15,865,000) and the number of 241,854,000 shares (2003: 241,854,000 shares) in issue during the period. Remuneration is reviewed annually and certain staff members are entitled to commission. In addition to the basic salaries and contributions to the mandatory provident fund, the Group also provides No diluted earnings per share amount is presented for the current period as there were no dilutive potential staff benefits including discretionary bonus and medical scheme. ordinary shares in existence during the period. AUDIT COMMITTEE RESULTS The Audit Committee has reviewed with management the accounting principles and practices adopted For the period ended 30th June 2004, the Group’s turnover and net profit were HK$210,259,000 by the Group and discussed auditing, internal control and financial reporting matters including the (2003: HK$210,674,000) and HK$31,681,000 (2003: HK$15,865,000) respectively. review of the interim financial statements which have not been audited. INTERIM DIVIDEND The Board resolved to recommend an interim dividend of HK$0.02 per share for the period ended PURCHASE, SALE AND REDEMPTION OF SHARES 30th June 2004. The interim dividend will be payable on 25th November 2004 to shareholders There was no purchase, sale or redemption of the Company’s shares by the Company or any of its whose names appear on the Register of Members of the Company on 29th October 2004. subsidiaries during the six months ended 30th June 2004. CLOSURE OF THE REGISTER OF MEMBERS COMPLIANCE WITH THE CODE OF BEST PRACTICE OF THE LISTING RULES The Register of Members will be closed from 27th October 2004 to 29th October 2004, both days In the opinion of the directors, the Company has complied with the Code of the Best Practice as set inclusive, during which period no transfer of shares will be registered.