LUEN THAI<00311> - Results Announcement
Luen Thai Holdings Limited announced on 20/04/2006:
(stock code: 00311 )
Year end date: 31/12/2005
Auditors' Report: Unqualified
(Audited ) Last
from 01/01/2005 from 01/01/2004
to 31/12/2005 to 31/12/2004
Note ('000 ) ('000 )
Turnover : 590,234 553,766
Profit/(Loss) from Operations : 23,055 38,363
Finance cost : (3,474) (1,432)
Share of Profit/(Loss) of
Associates : (1,891) 529
Share of Profit/(Loss) of
Jointly Controlled Entities : (257) (847)
Profit/(Loss) after Tax & MI : 13,240 30,361
% Change over Last Period : -56.4 %
EPS/(LPS)-Basic (in dollars) : 0.013 0.039
-Diluted (in dollars) : 0.013 0.039
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 13,240 30,361
Final Dividend : US$0.00156 US$0.0052
per Share (EQUIVALENT TO
(Specify if with other : N/A N/A
B/C Dates for
Final Dividend : 22/05/2006 to 26/05/2006 bdi.
Payable Date : 08/06/2006
B/C Dates for Annual
General Meeting : 22/05/2006 to 26/05/2006 bdi.
Other Distribution for : N/A
B/C Dates for Other
Distribution : N/A
1. The consolidated financial statements of Luen Thai Holdings
Limited have been prepared in accordance with Hong Kong Financial
Reporting Standards ("HKFRS"). The consolidated financial statements have
been prepared under the historical cost convention, as modified by the
revaluation of available-for-sale financial assets, financial assets and
financial liabilities at fair value through profit or loss, which are
carried at fair value.
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.
In 2005, the Group adopted the new/revised standards and interpretations
of HKFRS below, which are relevant to its operations. The 2004
comparatives have been amended as required, in accordance with the
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 amortisation and accumulated impairment.
The adoption of HKASs 32 and 39 has resulted in a change in the accounting
policy relating to the classification of financial assets at fair value
through profit or loss and available-for-sale financial assets. On 1
January 2005, the long-term investment amounting to US$1,648,000 was
reclassified as available-for-sale financial assets.
The adoption of HKFRS 2 has resulted in a change in the accounting policy
for share-based payments. Until 31 December 2004, the provision of share
options to employees did not result in an expense in the income statement.
Effective on 1 January 2005, the Group is required to expense the cost of
share options in the income statement. The change in the accounting
policy does not have any material effect on the financial statements.
The adoption of HKFRS 3, HKAS 36 and HKAS 38 results in a change in the
accounting policy for goodwill. Until 31 December 2004, goodwill was:
- Amortised on a straight line basis over a period of 10 years;
- Assessed for an indication of impairment at each balance sheet date.
In accordance with the provisions of HKFRS 3:
- The Group ceased amortisation of goodwill from 1 January 2005;
- Accumulated amortisation as at 31 December 2004 amounting to
approximately US$1,124,000 has been eliminated with a corresponding
decrease in the cost of goodwill; and
- From the year ended 31 December 2005 onwards, goodwill is tested
annually for impairment, as well as when there is indication of
2. Share of taxation attributable to jointly controlled entities for
the year ended 31 December 2004 of approximately US$18,000 is reclassified
and restated in the income statement as share of loss of jointly
3. The basic earnings per share is calculated based on the Group's
profit attributable to equity holders of the Company of approximately US$
13,240,000 (2004: US$30,361,000) and weighted average number of 983,356,
000 (2004: 780,117,000) ordinary shares.
There was no dilutive effect on earnings per share since all outstanding
share options were anti-dilutive.