AEON STORES<00984> - Results Announcement
AEON Stores (Hong Kong) Co. Limited announced on 09/09/2005:
(stock code: 00984 )
Year end date: 31/12/2005
Currency: HKD
Auditors' Report: N/A
Interim report reviewed by: Audit Committee
(Unaudited )
(Unaudited ) Last
Current Corresponding
Period Period
from 01/01/2005 from 01/03/2004
to 30/06/2005 to 31/08/2004
Note ('000 ) ('000 )
Turnover : 2,605,943 2,242,996
Profit/(Loss) from Operations : 50,263 38,022
Finance cost : (4) (8)
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 : 37,273 26,711
% Change over Last Period : N/A %
EPS/(LPS)-Basic (in dollars) : 0.1434 0.1027
-Diluted (in dollars) : N/A N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 37,273 26,711
Interim Dividend : 5.5 cents 4.0 cents
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Interim Dividend : 12/10/2005 to 14/10/2005 bdi.
Payable Date : 21/10/2005
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with
the applicable disclosure requirements of Appendix 16 to the Rules
Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited and with Hong Kong Accounting Standard 34 "Interim financing
reporting" issued by the Hong Kong Institute of Certified Public
Accountants ("HKICPA").
During 2004, the Company changed its financial year end date from 28
February to 31 December. The condensed financial statements for the
current period cover a six month period from 1 January 2005 to 30 June
2005. Accordingly, the comparative amount shown for the condensed
consolidated income statement, condensed consolidated statement of changes
in equity, condensed consolidated cash flow statement and related notes
covered a six month period from 1 March 2004 to 31 August 2004 and
therefore may not be comparable with amounts shown for the current period.
2. PRINCIPAL ACCOUNTING POLICIES
The condensed financial statements have been prepared on the
historical cost basis except for certain financial instruments, which are
measured at fair values, as appropriate.
The accounting policies used in the condensed financial statements
are consistent with those followed in the preparation of the Group's
annual financial statements for the period from 1 March 2004 to 31
December 2004 except as described below.
In the current period, the Group has applied, for the first time,
a number of new Hong Kong Financial Reporting Standards, Hong Kong
Accounting Standards ("HKASs") and Interpretations (hereinafter
collectively referred to as "new HKFRSs") issued by the 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 income statement, balance sheet and the statement of
changes in equity. In particular, the presentation of minority interest
has been changed. The changes in presentation have 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.
Financial Instruments
In the current period, the Group has applied HKAS 32 "Financial
instruments: Disclosure and presentation" and HKAS 39 "Financial
instruments: Recognition and measurement". HKAS 32 requires retrospective
application. HKAS 39, which is effective for annual periods beginning on
or after 1 January 2005, 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 32
and 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 debt or equity securities are classified as "investment
securities", "other investments" or "held-to-maturity 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. Held-to-
maturity investments are carried at amortised cost less impairment losses
(if any). From 1 January 2005 onwards, the Group classifies and measures
its debt and equity securities in accordance with HKAS 39. Under HKAS 39,
financial assets are classified as "financial assets at fair value through
profit or loss", "available-for-sale financial assets", "loans and
receivables", or "held-to-maturity financial assets". 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. "Loans and
receivables" and "held-to-maturity financial assets" are measured at
amortised cost using the effective interest method.
On 1 January 2005, the Group reclassified/designated its debt and
equity securities (previously carried at cost less impairment) as
available-for-sale investments in accordance with the requirements of HKAS
39. An adjustment of HK$17,640,000 to the previous carrying amounts of
these debt and equity securities at 1 January 2005 has been made to the
Group's retained profits.
The effects of the changes in the accounting policies described above did
not have other significant effect on the results for the current and prior
period.
3. TURNOVER
The Group is principally engaged in the operation of general merchandise
stores. No business segment analysis is presented as the management
considers that the Group has one single business segment. The Group's
operations are located in Hong Kong and the People's Republic of China ("
PRC"), other than Hong Kong.
An analysis of the Group's revenue and results by geographical segment is
as follows:
Six months ended 30 June 2005
Hong Kong PRC Consolidated
HK$'000 HK$'000 HK$'000
TURNOVER
External sales 1,822,109 783,834 2,605,943
SEGMENT RESULT
Profit (loss) before finance
costs 52,578 (2,315) 50,263
Finance costs (4) - (4)
------------ ---------- ----------
Profit (loss) before taxation 52,574 (2,315) 50,259
Income tax expenses (11,285) (3,293) (14,578)
------------- -------------- ---------
Profit (loss) for the period 41,289 (5,608) 35,681
====== ========== ==========
Six months ended 31 August 2004
Hong Kong PRC Consolidated
HK$'000 HK$'000 HK$'000
TURNOVER
External sales 1,630,587 612,409 2,242,996
SEGMENT RESULT
Profit before finance costs 25,336 12,686 38,022
Finance costs (8) - (8)
---------- ---------- -----------
Profit before taxation 25,328 12,686 38,014
Income tax expenses (7,138) (1,984) (9,122)
----------- ----------- --------------
Profit for the period 18,190 10,702 28,892
=========== ======== =======
4. INCOME TAX EXPENSES
Six months ended
30.6.2005 31.8.2004
HK$'000 HK$'000
Current tax:
Hong Kong Profits Tax 10,095 7,300
PRC income tax 3,292 1,984
--------- ------
13,387 9,284
Deferred tax:
Charge (credit) for the period 1,191 (162)
-------- -------
14,578 9,122
======== =======
Hong Kong Profits Tax is calculated at 17.5% (six months ended 31.8.2004:
17.5%) of the estimated assessable profit for the period.
PRC income tax is calculated at 33% of the estimated assessable profits of
the subsidiaries.
5. DIVIDENDS
On 16 June 2005, a dividend of 8.5 HK cents (six months ended 31.
8.2004: 13.0 HK cents) per share amounting to HK$22,100,000 (six months
ended 31.8.2004: HK$33,800,000) was paid to shareholders as the final
dividend for the ten months ended 31 December 2004.
The directors have declared that an interim dividend of 5.5 HK cents (six
months ended 31.8.2004: 4.0 HK cents) per share amounting to HK$14,300,000
(six months ended 31.8.2004: HK$10,400,000) be paid to the shareholders of
the Company whose names appear on the Register of Members on 12 October
2005. The interim dividend will be paid on or before 21 October 2005.
6. EARNINGS PER SHARE
The calculation of earnings per share attributable to the equity holders
of the parent is based on the Group's net profit for the period
attributable to the equity holders of the parent of HK$37,273,000 (six
months ended 31.8.2004: HK$26,711,000) and on 260,000,000 (six months
ended 31.8.2004: 260,000,000) ordinary shares in issue during the period.
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